A school district just south of Dallas, Texas, issued $197.4 million in bonds to finance school construction.
The bonds, sold by Waxahachie Independent School District (ISD), mature between 2025 and 2053, yielding between 2.92% and 4.273%. They received a rating of AAA from Fitch Ratings and Aaa from Moody’s Investors Service.
The rating reflects the district’s “strong population trend and modest economic level metrics,” as well as its “ample level of budgetary flexibility,”” Fitch analysts wrote.
The district will use the bond proceeds to build new schools and renovate existing ones. The issuance comes amid rising enrollment in the district that has created incentives for expansion. The district currently enrolls 11,000 students, about 50% more students than the 7,600 that it enrolled a decade ago
Waxahachie ISD is about 30 miles south of Dallas. The growth in the school district mirrors population growth in the broader Dallas-Fort Worth metropolitan area, which is among the fastest-growing in the United States. The metro area had the highest numeric population increase between 2022 and 2023, according to the U.S. Census Bureau.
The bonds are direct obligations of the Waxahachie ISD, payable by property taxes. The size of the district’s taxable base has increased broadly in line with population growth, increasing the security for bond issuances.
Jefferies LLC served as lead underwriter on the issuance. SAMCO Capital Markets, Inc acted as financial advisor.