A school district in the suburbs of Oakland, California, sold about $72.5 million worth of bonds to finance the acquisition and construction of new educational facilities.
The bonds, issued by Pittsburg Unified school district in Contra Costa county, mature between 2028 and 2043, with yields ranging from 2.83% to 5.7%. The bonds received an underlying rating of A+ from S&P Global Ratings.
The bonds are general obligations on the district, backed by property taxes collected by the county. The bonds will also be guaranteed by a municipal bond insurance policy.
“The amount of the annual ad valorem tax levied by the county to repay the Bonds will be determined by the relationship between the assessed valuation of taxable property in the District and the amount of debt service due on the Bonds in any year,” according to the official statement accompanying the sale of the bonds.
The issuance comes amid growth in property values in the county. In the past decade, property values in Contra Costa county have increased by almost 60%, raising the taxable base for the county’s revenue collection.
The bonds were approved in a ballot measure in 2018, which authorized up to $100 million in bonds.
Raymond James served as lead underwriter on the issuance, purchasing the bonds for $76 million. The price reflected a premium of $3.5 million.