Prince George’s County Public Schools is set to launch a $663.465 million bond deal aimed at fast-tracking the construction of eight new schools through a public-private partnership. This initiative is powered by taxable sustainable revenue bonds, marking a strategic move in a market where there is a high demand for taxable paper. With Wells Fargo and TD Securities serving as lead underwriters, and Squire Patton Boggs as the bond counsel, the project seems to be well-supported by reputable financial institutions.
The project’s financial structure involves Progressive Education Partners as the borrower, with Plenary Americas owning half of PEP and acting as the developer. PEP is tasked with the entire lifecycle of the schools’ construction and maintenance. The deal is expected to benefit from the experience and expertise of all parties involved, particularly as it aims to positively impact the communities where the schools will be built.
Despite recent market volatility, the project managers express optimism about the demand for the bonds. The strategic use of taxable municipal bonds, in a market where taxable issuance has been on the decline, is expected to create a unique appeal among investors. The maturity structure of the bonds, scheduled from 2029 to 2056, offers flexibility and potential for high investor interest.
The project’s goal of constructing eight new schools with modern facilities to replace outdated ones is not only aimed at alleviating capacity issues but also expanding educational opportunities for students. The commitment to meeting defined environmental standards, such as achieving a LEED silver designation, underscores the project’s sustainability and community impact.
Moody’s rating of A3 with a stable outlook provides a positive assessment of the bond deal’s financial viability. Additionally, the project’s designation as sustainable by BTY US LLC aligns with Green Bond and Social Bond Principals, reflecting a commitment to environmental and social responsibility.
The Prince George’s County Public Schools bond deal represents a significant investment in the future of education in the county. By leveraging a public-private partnership and sustainable financing, the project aims to address critical infrastructure needs while creating valuable educational opportunities for students. With a strong financial structure, positive market conditions, and a focus on sustainability, the bond deal sets a promising path for the development of the school facilities and the well-being of the community.