A school district north of the Dallas-Fort Worth Metroplex issued almost $50 million in bonds to acquire, construct, renovate, and equip school buildings.
The bonds, issued by the Anna Independent School District, mature between 2024 and 2053, with yields ranging from 3.0% to 4.32%. The bonds received a rating of AAA from S&P Global Ratings.
The issuance marks the first usage of almost $800 million that voters in the district authorized for bond spending last November. All together the bonds will fund four new elementary schools, two new middle schools, and a new high school.
The district has about $744 million remaining in authorized issuance, though it is not required to spend the full authorized amount.
“A bond authorization does not mean that additional bonds will be issued. The issuance depends on the district’s tax base and verified growth. If the housing market and economy slow down, then we slow our plan down,” according to the district’s website promoting the bond issuance.
The issuance comes amid rapid growth in the city of Anna that is pushing pressure on the district’s schools. Within five years, the district projects that it will be home to 10,000 new homes, and with them 7,800 new students. The district has a total student capacity of 6,000, a number that it expects to exceed by 2025.
The bonds will be general obligations on the district, backed by its full faith and credit and financed by property taxes.
Piper Sandler & Co served as lead underwriter on the issuance, purchasing the bonds with an underwriters’ discount of $272,000.