By Stephen Nakrosis
The Sheldon Independent School District in Harris County, Texas, is selling $90 million of unlimited tax school building bonds, which will pay for construction and equipment for the area's fastest growing school district.
A competitive sale will be held to issue the bonds, and sealed bids are due Nov. 12 by 10:00 a.m. Central time, according to a document posted Tuesday on MuniOS. The bonds will go to the bidder who offers the district the lowest true interest cost.
The bonds will be dated Dec. 1 with interest due beginning Feb. 15, 2025, and payable each Feb. 15 and Aug. 15 until maturity or early redemption. The bonds mature from February 2027 through February 2054.
Interest and principal payments are backed by an ad valorem tax on all taxable property in the district, which was authorized by a vote held in November 2022.
Proceeds from the sale are slated to finance the construction and equipping of new school buildings, the purchase of buses, technology upgrades and issuance costs. The Sheldon ISD is the fastest growing public school district on the North East side of Houston, and has average enrollment growth of 300 to 400 students per year, according to its web site.
The district has received conditional approval that payment of principal and interest will be guaranteed by the Texas Permanent School Fund. Securities backed by the fund are rated AAA by the three major credit rating firms, according to the offering document.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
11-06-24 1910ET
