El Segundo Unified School District Issues $27 million in Measure ES Bonds

The District achieved bond ratings of “Aa2” from Moody’s Investors Service and “AA” with an outlook of stable from Standard and Poor’s. The rating agencies cited the District’s maintenance of strong reserves, consistent financial performance supported by long-term investment and capital planning, good management policies and practices, and out-of-District enrollment, as well as a strong underlying economy in the greater Los Angeles metropolitan region.

The District’s strong performance and solid credit ratings helped attract strong investor interest, attracting six different investors on the day of the sale. In addition, the District sold its bonds during a historically low interest rate environment. The Series A bonds have a borrowing cost (true interest cost) of 3.15% with a final maturity in 2048. The District estimates that the new maximum tax rate will not exceed $42.96 per $100,000 of assessed value throughout the life of the Measure ES bond program. The $27 million was issued as traditional current interest bonds and not capital appreciation bonds.

The Series A bonds generated $27 million in project proceeds, which will be used for upgrades to school facilities including but not limited to fencing and secure entry vestibules, a new gym at the middle school, a library renovation at the high school, and shade structures at the elementary schools.

 

9/4/19