A school district nestled within Colorado’s Rocky Mountains sold $100 million in bonds to finance the construction of an early childhood learning center and associated employee housing.
The bonds, sold by Eagle County School District, mature between 2036 and 2043, yielding between 2.86% and 3.76%. The securities received an enhanced rating of Aa2 from Moody’s Investors Service, which assigned an underlying rating of Aa1.
“Affirmation of the Aa2 issuer rating reflects the district’s very strong income and wealth levels, which exceed ‘Aa’ medians, driven by high value second homes and heavy tourism activity associated with the Vail Ski Resort and other recreational areas in the district’s boundaries,” Moody’s analysts wrote.
The issuance comes amid an explosion in property values in Eagle County, which includes Vail and Beaver Creek Ski Resort. Assessed valuation in Eagle County was 44% higher in 2023/24 than it was in 2019/20, according to the official statement accompanying the sale of the bonds. Higher property value means higher property taxes, which the Eagle County school district can use to secure bond issuances.
The bond proceeds will fund the construction of an early learning center in the town of Gypsum that is expected to open in 2026. The bonds will also finance workforce housing for employees of the Gypsum Learning Center.
The bonds are general obligations of the school district, payable by property taxes.
RBC Capital Markets, LLC served as underwriter on the issuance, purchasing the bonds for $112.5 million. The price reflected a premium of more than $12 million.