$362.7 Million in Bonds Sold by the Peralta Community College District

OAKLAND, Calif., April 7, 2025 – The Peralta Community College District (PCCD) announced the successful sale of $362.7 million in bonds on March 26, 2025, marking a significant financial milestone for the District.

The sale attracted a wide range of investor interest with demand exceeding the available bonds, allowing the District to reduce interest rates on most maturities. The combined true interest cost (TIC) was 4.05%, significantly lower than the 5.50% assumption used in the District's long-term financial model. This lower rate is expected to result in substantial savings for taxpayers.

The bond sale included:

• $150 million in new money bonds: These bonds, maturing through August 1, 2054, will fund scheduled bond projects over the next two to three years. This issue represents the third series of bonds sold under the 2018 Measure G, an $800 million bond measure approved by 75.8% of voters in November 2018. Following this sale, the District will have $480 million remaining under the 2018 Measure G authorization.
• $212.7 million in refunding bonds: These bonds refinance previously issued bonds from 2014 and 2016, resulting in a total taxpayer savings of $13.7 million. This is the tenth series of refunding bonds issued by the District since 2000, with each series returning savings to District taxpayers in Northern Alameda County.

Positive Ratings and Investor Confidence 

Both S&P Global Ratings and Fitch Ratings affirmed the District’s AA- rating. Fitch revised their outlook from negative to stable. This positive change reflects the agencies' confidence in the District's improved management and financial stability, led by Dr. Tammeil Gilkerson (Chancellor) and Greg Nelson (Deputy Chancellor & Chief Operating Officer). "We believe the recent improvements in management and governance, particularly as they relate to financial management policies and practices, are supportive credit factors," stated S&P in its credit opinion. The transaction was notable for the breadth of investor interest.

Dr. Tammeil Gilkerson, PCCD Chancellor, expressed her gratitude, commenting, "I want to thank the Board of Trustees for prioritizing fiscal governance and making sound financial decisions that reinforce the public's trust of our mission to advance social and economic transformation for students and the community. This sale will fund upgraded facilities for teaching and learning, helping students here in the East Bay achieve their dreams.”

Looking Ahead 

"This successful bond sale represents significant progress for the Peralta Community College District," said Greg Nelson, Deputy Chancellor and COO. "The competitive interest rates, permanent leadership, and stable ratings reflect the market's confidence in our short-term and long-term planning. We will continue to improve our financial and operational management and ensure that our bonds achieve the best possible rates for our taxpayers."

The District anticipates that the 2018 Measure G bond program will be completed under budget from a taxpayer perspective and that it will be able to continue to sell bonds under the 2018 Measure G authorization without exceeding disclosed tax rate targets.

PCCD was served by municipal advisors at Backstrom McCarley Berry & Co., LLC and by bond counsel at Orrick, Herrington & Sutcliffe LLP. The offering was underwritten by Siebert Williams Shank & Co., LLC, and Barclays Capital Inc.

The bond sale helps fund construction projects underway to provide state-of-the-art learning facilities for PCCD’s students including a new Berkeley City College building on Milvia Street in downtown Berkeley, a new Automotive Transportation Technologies Building and Aviation Complex at College of Alameda, a new Child Development Center and Horticulture Building at Merritt College, and a Learning Resource Center at Laney College, among other projects.

For more information about PCCD’s bond-financed capital projects, please visit https://build.peralta.edu.