The Midland Independent School District (MISD) reported an investor demand as the first of two bond offerings from the 2023 bond election entered the market on Tuesday. According to a release from MISD, the series 2024 bond was initially anticipated to have a 5.25% interest rate during planning, but finalized at a lower rate of 4.09% to be paid semi-annually.
In the first 30 minutes, the bond garnered twice as many orders as were available. This figure soared to 5.6 times "oversubscribed" within the first 90 minutes of its availability, as reported in the release. Residents in Midland and Ector counties received first priority in the bond acquisition process.
"There were 130 different investors who placed orders, which speaks highly of the district's credit rating and recognition in the market," MISD Chief Financial Officer Tucker Durham said in the release.
The series 2024 bond amounts to $873,930,000 and boasts a 30-year term. It earned an Aaa rating by Moody's and AAA by S&P. Raymond James served as the senior underwriter, with additional underwriters including Frost Bank, BOK Financial, Baird, FHN Financial, and Estrada Hinojosa.
The repayment plan for the bond spans 30 years, as per the information released. The expected total cost, assuming payment until the end without early payments or refinancing, is $310 million less than what was first projected during the bond planning process.
Anticipating a second offering in 2026, MISD holds an Aa1 bond credit rating from Moody's, which recently upgraded its outlook to "positive" from stable. S&P rates the district AA, and MISD maintains a AAA rating from the Texas Permanent School Fund.
For more information, visit the Midland ISD Bond 2023 website.