A performing arts school in the heart of Los Angeles is planning to borrow $117 million in the municipal bond market on Tuesday, marking the largest private school deal in two years. This transaction highlights a notable recovery in the private education sector's access to capital markets. The sale, which is expected to attract institutional buyers, comes amid stable demand for tax-exempt bonds despite broader economic uncertainty.

The school, known for its specialized arts curriculum, intends to use proceeds for campus expansion and facility upgrades. Analysts view this as a positive signal for private schools that rely on bond financing for long-term projects. The deal size surpasses all similar offerings since 2023, underscoring growing confidence in private education debt.

Market participants note that the bond's structure and credit rating will be closely watched. The Los Angeles location adds geographic appeal, as California munis remain a favorite among investors. If successful, this could pave the way for more private school issuances in the coming months.