Stockton Unified School District Secures $140M in GO Bonds with Loop Capital as Sole Underwriter

Deal News | May 07, 2025 | Loop Capital Markets LLC

Stockton Unified School District Secures $140M in GO Bonds with Loop Capital as Sole Underwriter

Loop Capital Markets recently served as the sole underwriter for a highly successful issuance of $140 million in General Obligation (GO) Bonds by the Stockton Unified School District. The issuance, rated Aa3 by Moody's and insured with an AA rating by S&P, marks the first issuance under Measure C, approved by district voters in November 2022. The capital raised will be utilized for acquisitions and improvements within the district's facilities. With a strategic approach to marketing and investor relations, Loop Capital notably accelerated the pricing process ahead of a critical Federal Open Market Committee (FOMC) meeting. As a result, the bonds were oversubscribed by 5.6 times, drawing over $789 million in orders from 32 accounts, including a mix of repeat buyers and 25 new investors. This strong demand allowed Loop Capital to tighten interest rate spreads and secure an All-In-True Interest Cost (TIC) of 4.41%, notably lower than initial estimates.

Sectors

  • Finance
  • Education

Geography

  • United States – The transaction involves Loop Capital Markets, an American firm, and the Stockton Unified School District, also located within the United States.
  • California – Stockton is a city in California, which is the location of the school district involved in the bond issuance.

Industry

  • Finance – This article involves activities related to the issuance of bonds and financial underwriting, which is a core function of the finance industry.
  • Education – Stockton Unified School District is utilizing the bond proceeds for educational facility improvements, placing it within the education sector.

Financials

  • $140 million – The total value of the General Obligation Bonds issued by Stockton Unified School District.
  • 4.41% – The All-In-True Interest Cost (TIC) achieved on the bonds, which was 37 basis points lower than the estimated cost.
  • $789 million – The total amount of orders generated from the bond sale, indicating a 5.6 times oversubscription.

Participants

NameRoleTypeDescription
Loop Capital Markets LLCSole UnderwriterCompanyA financial services firm that managed the underwriting process for the Stockton Unified School District's bond issuance.
Stockton Unified School DistrictIssuerGovernmentA public school district in California issuing bonds to fund facility improvements.
Moody'sRating AgencyCompanyA credit rating agency that rated the bonds issued by the district.
S&P Global RatingsRating AgencyCompanyA credit rating agency providing an AA rating with BAM insurance for the district's bonds.
FOMCRegulatory OversightGovernmentThe Federal Open Market Committee, whose interest rate decisions influence bond pricing strategies.
District VotersApproversPeopleThe voters from Stockton Unified School District who approved Measure C, allowing for the bond issuance.