A school district north of Fort Worth, Texas, sold $172.1 million in bonds to make improvements to school facilities.
The bonds, issued by the Northwest Independent School District, mature between 2024 and 2049, yielding between 2.62% and 3.98%. They received an enhanced rating of Aaa from Moody’s Investors Service and AAA from Fitch Ratings, and underlying ratings of Aa2 from Moody’s and AA from Fitch.
The “ratings reflect the district’s strong operating performance while successfully managing rapid enrollment growth,” Fitch analysts wrote.
The issuance comes amid rapid population growth in the Dallas-Fort Worth metropolitan area, leading to an increase in enrollment in the area’s schools. The population of the school district rose to 132,000 in 2021, marking a 73% increase from the 2010 census, according to Fitch.
Unlike many school districts across the United States, enrollment at Northwest ISD was not dented by the COVID-19 pandemic. In fact, enrollment at the district’s 34 schools has nearly doubled over the past decade, rising from 15,293 in the 2010-11 academic year to 29,248 in 2022-23, according to the official statement accompanying the sale of the bonds.
Northwest ISD includes parts of Denton, Tarrant, and Wise counties, encompassing 232 square miles and 16 rural communities. The bonds are direct obligations of the district, payable by property taxes.
BOK Financial Securities, Inc served as senior underwriter on the issuance. Hilltop Securities Inc acted as financial advisor.