The bond sale proceeds will help refinance debt the school took on to purchase the site and support the campus expansion project, which has a total cost of $92 million.
A Los Angeles private school with ties to famous junk bond investor Michael Milken is looking to sell $63 million in municipal bonds to fund a campus expansion.
Milken Community School, a coed Jewish day school that's received backing from the Milken Family Foundation, is looking to refinance debt it took on to purchase a 22-acre site that will help the school triple in size. It's also planning to use the financing to add new facilities.
Private independent schools are increasingly looking to upgrade or build new facilities in order to justify lofty tuition and remain competitive as the population of school-aged kids drops due to a declining US birth rate.
Located off Mulholland Drive, the school will charge roughly $57,000 in tuition for students in grades 6 to 12 next year, plus extra costs for trips, MacBooks and school clothing.
Proceeds of the bond sale, which is slated for Tuesday, will help create a new upper school on the site and fund interior renovations, according to an investor presentation. The site was previously owned by American Jewish University, and Milken Community School borrowed $40 million to purchase it in 2024.
The school was first established in 1984 and became religiously affiliated with Stephen Wise Temple for several years until it became an independent nonprofit school in 2011.
Since 1990, MCS has received funding at key junctures in its history from the Milken Family Foundation, which was established by brothers Michael and Lowell Milken. Lowell Milken sits on the school's board of trustees alongside a roster of executives and entrepreneurs from companies including Mattel Inc. and Rodan & Fields.
The school has seen enrollment grow over the past five years to 814 students this year, compared to 719 in 2021-2022. By expanding its campus, the school hopes to increase enrollment to about 900 students.
S&P Global Ratings assignedBloomberg Terminal the bonds a BBB+ rating, citing the school's growing enrollment and its "well-connected and sophisticated board."
"In our view, MCS' market position is solid and reflects steady demand for the school's programs," wrote S&P analysts led by Mel Brown. "Management said MCS does not intend to increase enrollment to the detriment of its school culture."
The analysts also pointed to the school's strong fundraising history. Debt and project costs for the campus expansion are expected to be paid for by capital campaign receipts.
The school has already fundraised $110 million for the new campus project, though about $56 million of that will be collected over the next five years. Its goal is $135 million, and the total costs of the new campus are expected to be $92 million, according to S&P. Its endowment funds totaled about $12 million as of June 2025.
The debt is expected to be structured in two tranches with approximately $53 million maturing in 2033 and about $10 million due in 2036, according to bond documents.