91制片厂 sold bonds this week for the third phase of the 2019 Bond program. A $176.37 million total.
The $996 million 2019 Bond program, approved by voters in November 2019, is divided into five phases. Last February, the district sold the second phase of bonds to fund $194.4 million of project costs, and in early 2020, the first phase of bonds was sold for $311 million.
The new Webb Elementary under construction is funded by the 2019 Bond.
The proceeds from this year鈥檚 sale, the Series 2022 bonds, will be used to fund $18.131 million in technology projects, $1.371 million for fine arts, $2.197 million for transportation needs and $175.241 million for facility projects.聽
Learn more about the 2019 Bond and all of its projects.
The district achieved an effective interest rate on this bond issue of 2.76%. That is significantly lower than the 4.75%interest rate projected and used in models to put the original bond package together. The difference will mean significant savings as the district鈥檚 interest payments on this debt will be lower than anticipated.
鈥淚 am pleased with the results,鈥 said 91制片厂 Superintendent Dr. Marcelo Cavazos. 鈥淭oday鈥檚 sale allows the district to continue moving forward with the projects authorized by the voters in 2019. It also allows the district to help protect the financial interests of all of our students and residents, now and in the future.鈥
The sale and interest rate were aided by demand due to the district鈥檚 strong financial reputation. 91制片厂 has very strong credit scores with Moody鈥檚 Investor Service (Aa1 rating) and Standard & Poor鈥檚 Credit Rating (AA). Plus, all Texas school district bonds are guaranteed by Texas鈥櫬, which has the highest possible credit rating.
91制片厂 used the negotiated method of sale for the Series 2022 bonds, with Siebert Williams Shank serving as the senior manager, along with Frost Bank, Piper Sandler, Raymond James and RBC Capital Markets as co-managers. Hilltop Securities served the District on the transaction as financial advisor. McCall, Parkhurst & Horton served as bond counsel on the transaction and Holland & Knight served as counsel to the underwriters.