Trustees also approved a conversion for some of the debt, worth $47 million, from the 2013 bond to give them more flexibility on the interest rate.
The overview
The sale follows the first of the two bond sales approved. The first generated $140 million in capital funds for capital projects in 2024, according to district agenda documents.
Of the $140 million in the first sale, $117 million of that came from Proposition B of the bond, and the rest—$23 million—came from Proposition C.
The bond totaled $302 million, with each of the propositions totaling $265 million and $37 million, respectively. Proposition A, which is not included within these bond sales, was a voter-approved tax rate election, which totaled $17.5 million for day-to-day operations.
This next bond sale amounts to $162 million. Expenses covered as part of this sale include legal counsel, financial advisors, ratings agencies, paying agents and other financial transaction fees.
What else?
CCISD sold a portion of the 2013 bond as variable rate debt in three different tranches, according to district documents.
One of the tranches, totaling over $47 million, will expire in August, district documents note.
The upcoming expiration means the district will need to refinance the debt. The current market volatility allows CCISD to convert the $47 million to another term rate period or convert to a fixed rate, district documents note.
While the district has not yet decided which option they will take, the trustees’ approval now gives them flexibility to choose between the two options.
