A school district northeast of Fort Worth, Texas, sold $565.7 million in bonds to finance upgrades to its facilities.
The bonds, issued by the Hurst-Euless-Bedford Independent School District (HEB ISD), mature between 2026 and 2050, yielding between 2.59% and 4.23%. They received an enhanced rating of AAA from S&P Global Ratings and AAA from Fitch Ratings. Both of the ratings agencies assigned an underlying rating of AA+.
The rating “reflects the district’s robust economic resource base and healthy overall financial profile,” Fitch analysts wrote.
The issuance is part of the district’s largest-ever bond package. Voters in the district authorized almost $1 billion in bonds last November.
The district will use the bond proceeds to build new campuses for two of its high schools and four of its elementary schools, among other purposes. Both of the high schools were built in the 1960s and are now suffering from infrastructure problems, the Fort Worth Report reported. Construction is expected to be completed by the fall of 2027 or 2028, according to the school district’s website for the bond referendum.
The HEB ISD enrolls 22,947 students across three major Fort Worth suburbs. The bonds are direct obligations of the school district, payable by property taxes.
Jefferies, LLC served as lead underwriter on the issuance. Hilltop Securities Inc acted as financial advisor.