The city of Corpus Christi, Texas, sold more than $50 million in bonds to make a variety of improvements.
The city issued the bonds in four series. The largest issuance, the Series 2023 general improvement bonds, consisted of $33 million. Bonds in that series mature between 2024 and 2043, with yields ranging from 2.82% to 4.1%. The securities received a rating of Aa2 from Moody’s Investors Service, AA from Fitch Ratings, and AA from S&P Global Ratings.
The rating “reflects the city’s high independent revenue control, solid revenue growth prospects and expenditure flexibility, and healthy reserves that should allow the city to maintain superior financial resilience through typical economic cycles,” according to Fitch.
The issuance comes as several large industrial projects in Corpus Christi near completion. Fitch anticipates that those projects will raise property tax revenues in the city.
Located on the Gulf of Mexico, the city has become a hub for energy investment in recent years, especially downstream users of oil and gas. Last year, the Port of Corpus Christi accounted for 60% of all U.S. crude oil exports, according to a study by RBN Energy, a research firm.
Among other projects, the bonds will finance improvements to public safety facilities, including a police academy; public parks and golf courses; and upgrades to the city’s waste disposal systems.
The issuance will exhaust the remainder of a bond authorization Corpus Christi voters approved in 2020. Last November, voters in the city authorized an additional $125 million in bonds that the city expects to issue next year. The city also plans to propose another $125 million in bonds to voters in November 2024. The bonds are backed by property taxes and revenue from the city’s waste management system.
Jefferies LLC and Raymond James & Associates Inc served as underwriters on the issuance.