A school district outside of Houston, Texas, issued $146.1 million in bonds to finance improvements to its schools.
The bonds, sold by the Humble Independent School District (ISD), mature between 2026 and 2054, yielding between 2.64% and 4.24%. They received an enhanced rating of AAA from S&P Global Ratings and Aaa from Moody’s Investors Service, which assigned an underlying rating of Aa1.
“The Aa1 issuer rating reflects the district’s ample operating reserves and liquidity supported by a growing economy favorably located in the Houston MSA and increasing enrollment,” Moody’s analysts wrote, referring to the Houston Metropolitan Statistical Area.
Like many school districts in Texas, Humble ISD has grown in recent years. The district now enrolls 48,758 students, compared to 38,235 a decade ago. The bond proceeds will fund the school district’s expansion, including the construction of new buildings and the acquisition of the land they will stand on, as well as new school buses.
Humble is a city of almost 17,000 people less than 20 miles north of Houston. The bonds are direct obligations of the Humble ISD, payable by property taxes.
Piper Sandler & Co served as lead underwriter on the issuance, purchasing the bonds for $153.3 million. The price reflected a premium of more than $7 million. Post Oak Municipal Advisors LLC acted as financial advisor.