A school district in the suburbs of Dallas, Texas, issued $182.2 million in bonds to build new schools.
The issuance, sold by Forney Independent School District, contains serial bonds and term bonds. The serial bonds, consisting of about $69 million, mature between 2033 and 2043, yielding between 2.9% and 3.65%. The first term bond, consisting of $50 million, matures on August 15, 2048, and yields 3.84%. The second, consisting of $63 million, matures on August 15, 2053 and yields 4.18%. The securities received a rating of AAA from S&P Global Ratings.
“Proceeds from the sale of the 2023 Bonds will be used (i) for designing, constructing, renovating, improving, acquiring, and equipping school facilities (and any necessary or related removal of existing facilities) and the purchase of necessary sites for school facilities,” according to the official statement accompanying the sale of the bonds.
The issuance comes amid what the district describes as a “tremendous growth spurt.” Enrollment in the district reached 16,000 for the 2022-23 academic year, a 13% increase from the year prior. The district, which is located in Kaufman County, expects enrollment to double within the next decade.
The district’s growth is noteworthy amid falling enrollment rates in school districts nationwide. It reflects surging growth in Kaufman County, where the population has increased by 50% over the past five years. Property values have more than doubled during that period.
The school district made headlines last year for banning all hooded clothing, dresses, and skirts for older students.
FHN Financial Capital Markets served as lead underwriter on the issuance.