$110 Million in Champaign School District General Obligation Bonds to Finance Improvements at Eight Facilities
December 11 2017 - 2:57PM
Business Wire
Wells Fargo Securities leads diverse
underwriting syndicate as senior manager
Wells Fargo Securities announced today that it served as senior
manager for Champaign Unit 4 School District (the “District”) in
its recent sale of $110 million in general obligation bonds to
finance improvements for school buildings and sites. The district
serves more than 10,000 students in grades pre-K through 12 in the
Central Illinois communities of Champaign, Savoy, and
Bondville.
The bonds will improve eight facilities, including Dr. Howard
Elementary School, International Prep Academy, South Side
Elementary School, Edison Middle School, Central High School,
Centennial High School, Spalding Park, and McKinley Field.
“Wells Fargo is pleased to play a part in the renovation,
modernization and expansion of the Champaign School District,” said
Larry Richardson, the Chicago-based managing director and head of
Midwest Public Finance for Wells Fargo Securities. “Demand for the
bonds was high, including a big share of Illinois investors.”
Uncertainty about proposed tax reform led the district to upsize
the transaction to the maximum allowed under the bond resolution,
according to Thomas Lockman, chief financial and legal officer for
Champaign Unit 4 School District.
“We are very pleased with the results of the sale and the
resulting benefit to the community,” Lockman said. “The proceeds
acquired through this transaction will allow for transformative
educational opportunities for generations of our community’s
students and school staff.”
Wells Fargo Securities structured the transaction with serial
bonds that amortize from 2019 through 2031. Heavy investor demand
pushed total orders to $873 million and an oversubscription of 7.9
times, tightening the spread across all maturities, according to
Richardson. Retail investors accounted for more than half of the
order book, he said. All-in interest cost for the district was 2.81
percent with an average life of seven years.
In an effort to increase opportunities for minority- and
women-owned firms, the District selected a diverse underwriting
syndicate, led by Wells Fargo Securities as senior manager, with
Piper Jaffray & Co., BAIRD, and Siebert Cisneros Shank &
Co. L.L.C. serving as co-senior managers. Academy Securities,
Blaylock Van, LLC, and Stern Brothers & Co. served as
co-managers. Ehlers & Associates and Comer Capital Group serve
as the District’s co-municipal advisors.
The sale of the bonds on Nov. 14 followed last year’s approval
by District voters for $183.4 million in general obligation bonds.
The District expects to issue the balance of the bonds in 2020 to
pay the remaining costs of facility projects.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial
finance through more than 8,400 locations, 13,000 ATMs, the
internet (wellsfargo.com) and mobile banking, and has offices in 42
countries and territories to support customers who conduct business
in the global economy. With approximately 268,000 team members,
Wells Fargo serves one in three households in the United States.
Wells Fargo & Company ranked No. 25 on Fortune’s 2017 rankings
of America’s largest corporations. News, insights and perspectives
from Wells Fargo are also available at Wells Fargo Stories. Wells
Fargo Securities is the trade name for certain securities-related
capital markets and investment banking services of Wells Fargo
& Company and its subsidiaries, including Wells Fargo Bank,
N.A., acting through its Municipal Products Group.
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MediaGabriel Boehmer,
503-784-5319gabriel.h.boehmer@wellsfargo.com@GabeBoehmerWF
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