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RBC tells Rio Rancho board $20M bond sale attracted nine bidders; JPMorgan low at 3.04%
Summary
RBC Capital Markets reported on the district's Oct. 8 competitive sale of $20 million in voter-authorized general obligation bonds: nine bidders participated, JPMorgan submitted the low bid at 3.04%, RW Baird the high at 3.18%, and bonds mature in 2026 with closing Oct. 30.
RBC Capital Markets presented the results of Rio Rancho Public Schools’ Oct. 8 public competitive sale of $20 million in voter-authorized general obligation bonds at the board meeting on Oct. 14.
Eric Herrigan of RBC said the sale drew nine bidders. JPMorgan submitted the lowest interest-rate bid at 3.04% and RW Baird submitted the highest at 3.18%, with close proximity among the bids. Herrigan called the interest result ‘‘very good’’ given current market conditions and noted the bonds carry a short, two-year maturity with repayment in 2026; proceeds will be available after closing, scheduled for Oct. 30.
District staff and bond counsel were thanked for their work on the issuance; the superintendent and board members described the sale as timely and noted that the district’s tax base growth and credit interactions (including Moody’s) supported favorable results. Herrigan said market rates briefly dipped after the Federal Reserve cut rates in September but ticked up in recent weeks; the timing of the sale yielded a better rate than might otherwise have been achieved.
Board members did not take additional action beyond receiving the report; Herrigan offered to answer follow-up questions and provide slides and transaction details to board staff.
