Harris County, Texas, issued $746 million in bonds to make public improvements and refund previously issued securities.
The county sold the bonds in two series. The Series 2024A bonds, consisting of $322.9 million, mature between 2025 and 2054, yielding between 3.01% and 4.15%. The Series 2024 certificates of obligation, consisting of $423.1 million, mature between 2026 and 2054, yielding between 3.01% and 4.35%. The securities received a rating of AAA from Kroll Bond Rating Agency and Aaa from Moody’s Investors Service.
“The Aaa issuer rating reflects a large and robust economy anchored by the City of Houston, that continues its steady post pandemic recovery with high employment, a by-product of the desirability of the area,” Moody’s analysts wrote.
The county will use the proceeds from the Series A bonds to refund and defease commercial paper notes. It will use the proceeds from the certificates to improve county infrastructure, including jails, roads, and flood control projects.
Harris County includes Houston and its surrounding suburbs. The issuance comes on the heels of a $734 million issuance by the city.
The securities are payable by property taxes.
Morgan Stanley & Co LLC served as lead underwriter on the issuance, purchasing the bonds for $803 million. The price reflected a premium of $59.8 million and a discount of $2.73 million. Masterson Advisors LLC and TKG & Associates LLC acted as financial advisors.