A school district in San Diego County, California, sold $162.5 million in bonds to make improvements to district facilities.
The bonds were issued in two measures by the Chula Vista Elementary School District. The Measure VV bonds, consisting of $100 million, mature between 2024 and 2044, yielding between 2.6% and 4.22%. The Measure M bonds, consisting of $62.5 million, mature between 2024 and 2038, yielding between 2.6% and 3.24%. The securities received a rating of AA- from S&P Global Ratings.
The Measure VV bonds were authorized by Chula Vista voters in 2018, and the Measure M bonds were authorized in 2020. Measure VV passed with 68% of the vote, while Measure M passed with 55%.
The district will use the bond proceeds to “finance the renovation, construction, acquisition, furnishing and equipping of classrooms, schools, sites, and facilities of the district as authorized by the voters,” according to the official statement accompanying the sale of the bonds.
The issuance comes amid falling enrollment in Chula Vista Elementary School District and in public schools throughout California. Enrollment in the district dropped 4% between the 2019-20 and 2021-22 academic years, compared to 4.4% statewide. Nationally, public school enrollment fell 2.5% during that period, according to Department of Education statistics.
The bonds are general obligations of the district, payable by property taxes.
Loop Capital Markets LLC and UBS Financial Services, Inc served as underwriters on the issuance, purchasing the bonds for more than $176 million. The price reflected a premium of $14 million.