Waltham, Massachusetts, sold $65 million in bond anticipation notes to build a new high school.
The notes mature on October 10, 2024, and yield 3.41%. They pay interest at 5%. The securities received a rating of SP-1+ from S&P Global Ratings. The city expects the issue long-term debt within the next year.
“The City anticipates that the Notes will be retired at maturity from proceeds from the sale of the long-term bonds in anticipation of which the Notes are issued, proceeds from the sale of renewal bond anticipation notes and other available funds of the City, or a combination of such sources,” according to the official statement accompanying the sale of the bonds.
The bonds will finance the construction of a new campus for Waltham High School. When it is completed, the school will mark one of the most expensive publicly funded high school constructions in the state. The new high school is by far the largest project financed by Waltham’s long-term debt.
The city estimates that the school will cost $375 million, according to the bond documents. Waltham has already issued $144 million in general obligation bonds toward the project; it expects to issue an additional $100 million in fiscal year 2024. Construction began on the project in September 2020, with an estimated completion by September 2024.
Waltham is a city of 65,000 located nine miles west of Boston. The notes are general obligations of the city, backed by its full faith and credit.
BofA Securities, Inc served as lead underwriter on the issuance.