The bonds from the district’s 2020 bond election were sold on Wednesday, January 27, in the amount of $120,445,000. The bonds will provide $128,275,000 for construction, safety, and technology projects. This transaction issued 100% of the total $128,275,000 authorized amount.
The bonds were well received in the market and the underwriting team, led by Stifel, Nicolaus & Company Inc., completed the sale at an all-in true interest cost to the district of 1.823483% (including all issuance expenses). According to the finance team, this rate set a new low in the Texas market. The models used to share financial impact with taxpayers in FISD during bond presentations utilized a higher rate (3.50%). Because of the significantly lower interest cost, the projected tax impact of the bond on the debt service tax rate will be considerably lower than the $0.10 approved by voters.
The district’s bond ratings were affirmed at "Aa3" and "AA" by Moody’s and S&P. The bonds are guaranteed by the Texas Permanent School Fund and therefore also carry the highest ratings for municipal bonds of "Aaa" and "AAA."