A school distinct in the southeast exurbs of Dallas sold $98.8 million in bonds to finance improvements to its facilities.
The bonds mature between 2028 and 2054, yielding between 2.98% and 4.35%. They received an enhanced rating of AAA from S&P Global Ratings, which assigned an underlying rating of A+.
Kaufman Independent School District will use the bond proceeds to build new schools and update old ones. Voters in the district approved the issuance in a May bond election.
The issuance comes as the student population increases in Kaufman County, which is about 35 miles from downtown Dallas. Enrollment is up 15% over the past decade, to 4,378 students as of last October, according to the official statement accompanying the sale of the bonds. The district expects to grow by another 1,000 students in the next five years.
The increase in enrollment mirrors population gains in the county. The estimated population of the county seat, Kaufman, is up 35% since 2020, according to the bond documents.
Texas’ population grew more than any other state’s last year. School districts are adjusting by issuing bonds that finance expansion. Districts in the suburbs of Austin, Fort Worth, and Houston each sold more than $98 million in bonds last week.
Kaufman Independent School District’s bonds are direct obligations, payable by property taxes.
Frost Bank served as lead underwriter on the issuance. RBC Capital Markets, LLC acted as financial advisor.