The Texas Public Finance Authority sold $298.4 million in bonds to fund cancer research in the state.
The taxable bonds mature between 2024 and 2043, yielding between 5.272% and 6.401%. They received ratings of AAA from Fitch Ratings and AAA from S&P Global Ratings.
The rating reflects Texas’ “growth-oriented economy and the ample fiscal flexibility provided both by its conservative approach to financial operations and the maintenance of substantial reserves, including in its budgetary reserve, the economic stabilization fund (ESF),” Fitch analysts wrote.
The bond proceeds will finance grants for the Cancer Prevention and Research Institute of Texas, a state agency that funds cancer research. Created by the Texas legislature in 2007, the agency has since awarded more than $3 billion in grants to research institutions and organizations in the state, including more than $200 million this year.
The institute’s last major funding round, in August, disbursed $49 million through 29 grants. Significant awards will fund Baylor Research Institute’s participation in a national cancer study, the recruitment of a tumor researcher to Southern Methodist University, and nine grants to institutions outside of major metropolitan areas.
The bonds are general obligations of the state, backed by its full faith and credit.
Piper Sandler & Co served as lead underwriter on the issuance, purchasing the bonds at a discount of $1 million.