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November 15, 2022

Successful Bond Pricing for the Hopkins School

On November 8, 2022, the Hopkins School successfully priced its $23.63 million, publicly rated, tax-exempt bond offering through CHEFA. Hopkins School, founded in 1660, is Connecticut’s oldest educational institution, serving day students in grades seven thru twelve and based in New Haven. Due to its strong “AA-” rating from Standard & Poor’s, investor reception was overall favorable. The couponing structure consisted of bonds containing 5.00% and 5.25% coupons in maturities ranging from 2022 to 2053. Stifel, acting as Underwriter for the transaction, received approximately 2 times the number of orders for number of bonds available for sale, resulting in a 3-5 basis point reduction of spreads through the 2034 maturity. The total interest cost (TIC) for the transaction was 4.89%.

Market conditions favored the School with only $5.3 billion of expected supply versus a 2022 weekly average of $7.4 billion. Additionally, with the absence of any competing new issue independent schools on the day of pricing, and limited economic releases, Hopkins was able to capture investor attention with limited market volatility.

The School intends to use proceeds from the issuance of bonds to finance the defeasance of the outstanding Hopkins School Issue, 2009 Series C and 2017 Series D Bonds, together with the financing and/or refinancing of costs of construction, renovations and expansion of an existing campus building of an approximately 25,600 square foot, new Academic and Performing Arts Center, consisting of a theater, performing arts support spaces, multi-purpose classrooms, a parking lot and various open space upgrades. Remaining proceeds from the sale will finance other improvements and miscellaneous capital expenditures, construction, upgrading, renovation and equipping of the School’s facilities.

PFM Financial Advisors LLC acted as Financial Advisor for the Authority while Hawkins Delafield & Wood served as Bond Counsel and McCarter & English served as Special Counsel.