The city of Waco, TX has sold more than $152 million worth of bonds. The bonds will finance several infrastructure projects, including the construction of fire stations and renovation of the city’s Cameron Park Zoo.
The general obligation bonds, which carry maturities between one and 30 years, yield between 2.76% for securities that mature in 2029 and 4.42% for securities that mature in 2053. The securities are rated Aa1 by Moody’s Investors Service and AA+ by S&P Global Ratings. The bonds were sold to the financial services firm Jefferies LLC at 103.53% of par.
The proceeds will be “used to pay for the cost of various City projects and to pay the costs incurred in connection with the issuance,” according to the official statement.
The plan to modernize the city’s infrastructure comes amid a surge in economic activity across the state of Texas.
Waco is the 24th largest city in the state, roughly 100 miles from Dallas and Austin and almost 200 miles from Houston and San Antonio. It has experienced an economic resurgence over the past decade, with a slowly climbing growth rate.
The bonds will be used to finance the construction of fire stations, parks, city streets and improve the city’s traffic control, sewer, waterworks, and drainage systems, among other purposes.
The city has never defaulted on its tax supported debt.
Masterson Advisors served as financial advisor on the bond issuance.