Los Angeles Issues $1.1 Billion in Sustainable Bonds to Fund School Modernization

By Paulo Trevisani

The Los Angeles County Unified School District sold $1.1 billion in sustainability bonds to finance modernization projects.

General obligation bonds Series QRR 2024 include $781 million in tax exempt serial bonds maturing between 2025 and 2045 that carry a 5% coupon and priced with yields ranging from 2.23% to 3.38%. There is also a federally taxable $105.3 million bond maturing Jan. 1, 2025, which was priced at par with a 4.85% coupon , according to a document posted Tuesday on MuniOs.

There were also two term tax-exempt bonds due July 1 2049, one for $100 million with 4% coupon and 3.95% yield, and other for $113.7 million with 5.25% coupon and 3.51% yield.

The bonds are backed by property taxes.

Proceeds will fund projects including school modernization, adult career education, charter school facility upgrades, early childhood education and technology infrastructure.

The Los Angeles County Unified School District is the largest in California, and operated 1,238 individual schools and centers in fiscal year 2022-2023.

Moody's Investors Service has assigned a rating of Aa2 to the bonds, and Fitch Ratings has the debt at AAA.

RBC Capital Markets is the lead underwriter.

Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

October 02, 2024 14:34 ET (18:34 GMT)

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