Yahoo Finance Jerry Brown’s Elite High School to Sell $132 Million of Bonds for Campus Upgrade
(Bloomberg) -- The elite Catholic high school that educated former California Governor Jerry Brown plans to tap the municipal bond market to raise $132 million to spruce up its 11-acre San Francisco campus.
Most Read from Bloomberg
Biden Vows to Stay in 2024 Race Even as NATO Gaffes Risk His Campaign
Tesla Delays Robotaxi Event in Blow to Musk’s Autonomy Drive
Stock Rotation Hits Megacaps on Bets Fed Will Cut: Markets Wrap
St. Ignatius College Preparatory, a private high school just blocks from the Pacific Ocean has plans to build a new 165,000 square-foot learning complex complete with classrooms, gardens, cafes and the campus chapel. The so-called New Learning Commons will cost an estimated $185 million, most of it funded by municipal bonds, in a deal slated to price on July 17. The remaining financing will come from donations and its endowment, among other funds, according to preliminary bond documents.
“Our existing facility was built in 1969, and it’s time for something new,” said Ken Stupi, the school’s vice president of finance and administration in an interview. “We need the space.”
Typically, private schools seldom borrow in the state and local government debt market, but St. Ignatius joins a growing number that have sold bonds. Since the start of 2023, such schools have issued $660 million of debt — a roughly 15% increase from the two years prior, according to data compiled by Bloomberg. Earlier this year, the Wheeler School in New England sold an $11 million tax-exempt bond. That follows borrowings from Connecticut’s Loomis Chaffee School and Brunswick School in 2023.
Founded by a Jesuit priest in 1855, St. Ignatius College Prep admits less than half the students who apply and has about 1,500 currently enrolled, according to an investor presentation marketing the bond sale. Along with Brown, the school touts notable alumni like Dan Fouts, an NFL hall of famer who was once a star quarterback for the San Diego Chargers. Kate Brandt, Google’s chief sustainability officer and a former Obama administration appointee, also attended.
That prestige comes at a price. Tuition for the 2024-2025 school year is $32,950. While St. Ignatius is not as pricey as some San Francisco competitors, it ranks on the higher end for private high schools in California, which average about $22,000 in annual tuition, according to Private School Review, an online tool for evaluating US schools. The school also offers financial aid to about a quarter of its students.
Located in the Sunset District, a neighborhood just south of the Golden Gate Bridge — St. Ignatius boasts sailing, surfing and rowing teams, along with roughly a dozen other sports. Academically, the school’s average ACT score was 29 in 2024, meaning St. Ignatius students who took the standardized test scored better than about 92% of test takers nationwide.
“It’s a really, really good school,” said Stupi.
The new campus center will provide space for students to study, eat and attend events like dances. The school hired Mark Cavagnero Associates Architects, a firm that has designed spaces for Salesforce Inc. and Time USA, to create the blueprints. The rooftop terrace and the chapel will boast ocean views.
The bond deal will be issued by the California Municipal Finance Authority and underwritten by Oppenheimer and Piper Sandler The securities will be backed by revenue from the school, including tuition payments.
The bond sale is rated A by S&P Global Ratings, which cited the school’s very strong enterprise risk profile, with steady demand and a tenured management team, according to ratings analyst Alexander Enriquez.
Most Read from Bloomberg Businessweek
Ukraine Is Fighting Russia With Toy Drones and Duct-Taped Bombs
At SpaceX, Elon Musk’s Own Brand of Cancel Culture Is Thriving
He’s Starting an Olympics Rival Where the Athletes Are on Steroids
©2024 Bloomberg L.P.
