The Chicago Park District sold $71.4 million in bonds to finance capital improvement projects and refund previously issued securities.
The district issued the bonds in three series. The Series 2024A bonds, consisting of $25.3 million, mature between 2038 and 2047, yielding between 3.69% and 4.43%. The Series 2024B bonds, consisting of $37.1 million, mature between 2029 and 2038, yielding between 3.24% and 3.69%. The Series 2024E bonds, consisting of $9 million, mature between 2030 and 2037, yielding between 3.25% and 3.69%.
The securities received a rating of AA from Kroll Bond Rating Agency, AA- from S&P Global Ratings, and AA from Fitch Ratings, which upgraded the district from AA-.
The rating incorporates the district’s “financial resilience assessment, which reflects a low-midrange level of budgetary flexibility and an expectation that available reserves will be maintained at or above 20% of spending,” Fitch analysts wrote.
The Series 2024A bonds will fund projects in the district’s capital improvement plan, which calls for $163 million in bond issuances through 2028, according to the official statement accompanying the sale of the bonds.
Proceeds from the Series 2024B bonds will refund securities that the district sold in 2021. The Series 2024 E bonds will finance the construction and expansion of recreational facilities for people with disabilities.
The Chicago Park District manages the more than 600 parks in the city of Chicago and is governed by a board appointed by the city’s mayor. The bonds are general obligations of the district, backed by its full faith and credit.
Jefferies LLC served as lead underwriter on the issuance. Acacia Financial Group, Inc acted as financial advisor, and Columbia Capital Management, LLC acted as municipal advisor.