Los Angeles School District to Sell $1.1 Billion of Sustainability Bonds
By Patrick Sheridan
The Los Angeles County Unified School District is selling $1.1 billion in sustainability bonds with a portion of the proceeds slated for school modernization projects.
The general obligation bonds, Series QRR 2024, have maturities ranging from 2025 to 2049. Bonds due Jan. 1 are federally taxable and exempt from state taxes. Bonds maturing from July 1, 2025 through 2049 are tax-exempt, according to documents posted Wednesday on MuniOS. The interest rates and yields on the debt have yet to be determined.
Retail orders can be placed on Sept. 24, and the institutional sales start Sept. 25. Settlement is scheduled for Oct. 8.
The bonds are secured and payable from ad valorem property taxes to be levied within the district pursuant to California's constitution and state law.
A portion of the proceeds from the bonds will be used to fund projects including school modernization, adult career education, charter school facility upgrades, early childhood education, technology infrastructure and to also pay the costs of issuance.
The Los Angeles County Unified School District is the largest in the state, and operated 1,238 individual schools and centers in fiscal year 2022-2023. The district covers a 710-square-mile area that includes virtually all of the City of Los Angeles and some or all of another 28 cities and areas in Los Angeles County. Projected enrollment for the current fiscal year is 403,453 students for transitional kindergarten through 12th grade, according to the roadshow document on MuniOS.
Moody's Investors Service has assigned a rating of Aa2, and Fitch Ratings has the debt at AAA.
RBC Capital Markets is the lead underwriter.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
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