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Board hears report on $28 million voter-approved bond sale; closing set for Oct. 1
Summary
RBC Capital Markets reported the district’s sale of $28 million in voter-approved general obligation bonds, received 11 bids with UBS offering the low interest rate, and scheduled closing for Oct. 1.
The Rio Rancho Public Schools Board of Education received a report on Sept. 22 about the district’s Sept. 9 sale of voter-approved general obligation bonds totaling $28,000,000. Eric Harrigan of RBC Capital Markets told the board the district opened the sale to underwriters nationwide and received 11 bids; UBS Financial Services submitted the low bid at 2.63%.
Harrigan compared the results to prior sales, saying the district received nine bids in 2024 at 3.04% and seven bids in 2022 at 3.29%. He said the 2025 financing has a nine-year final maturity, noting the district’s growing tax base allows faster debt retirement while maintaining the debt-service tax rate. He also said the bonds include an early-call option in 2032 and that closing is scheduled for Oct. 1, when funds would become available for projects.
Harrigan told the board municipal rates had rallied before the sale and that the financing met the terms in the district’s delegation resolution. No board vote was taken on this item; Harrigan’s presentation was delivered as the board’s final pricing report on a previous authorization.
Board members thanked Harrigan and RBC staff for the work that produced favorable sale results given challenging market conditions.
