The city of Frisco, Texas, sold almost $233 million in bonds to fund municipal improvements.
The city issued the bonds in three series. The Series 2023 bonds, consisting of $161.5 million, mature between 2024 and 2043, yielding between 2.8% and 4.14%. The Series 2023A bonds, consisting of $18.5 million, also mature between 2024 and 2043, yielding between 2.85% and 4.15%. The Series 2023B bonds, which are taxable, mature between 2026 and 2038, yielding between 4.35% and 4.875%. The securities received a rating of Aaa from Moody’s Investors Service and AAA from S&P Global Ratings.
“The Aaa issuer rating reflects the city’s diverse and growing economy that is favorably located within commuting distance to several major employment centers, and strong resident income and property wealth metrics,” according to Moody’s.
The bonds will finance improvements to Frisco’s roads, waterworks, parks, and municipal center, as well as the construction of a new garage in the city’s downtown area, among other projects. The city has touted its infrastructure and parks as reasons for its economic development, which has proceeded at a rapid pace in recent years. The taxable assessed value of property in Frisco, a metric that contributes to the formula for bond raises, rose to $42.2 billion for fiscal year 2023, up from $29.4 billion in fiscal year 2018.
Frisco is a city of 200,000 about 25 miles north of Dallas. The bonds are general obligations of the city, payable by property taxes. The Series 2023A bonds will also be backed by surplus sewer system revenue.
BofA Securities Inc served as underwriter on the Series 2023 and Series 2023A bonds, purchasing the securities for almost $204 million. The price reflected a premium of $14 million. Wells Fargo Bank served as underwriter on the Series 2023B bonds, purchasing the securities for close to par.