OAKLAND, CA – During the Peralta Community College District (PCCD) Charrette on November 10, 2022, Interim Chancellor Dr. Jannett N. Jackson announced the successful sale of approximately $151 million of General Obligation (GO) bonds. The sale included $120 million of GO new money bonds that will fund voter-approved infrastructure improvements at PCCD’s four colleges and $31 million of GO refunding bonds to refinance bonds issued in 2012.
Proceeds of the new money bonds will fund PCCD capital projects over the next two years that were overwhelmingly approved by Alameda County voters in 2018 under the Peralta Colleges Upgrades Measure (Measure G).
These projects will provide state-of-the-art learning facilities for PCCD’s students through the construction of a new Berkeley City College building, a new Auto and Diesel 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. PCCD anticipates that construction on these projects will begin over the next several months.
Proceeds of the refunding bonds will refinance bonds issued in 2012 (Election of 2000, Measure E) and will save taxpayers $1.5 million over the next 12 years. PCCD has actively managed its bond portfolio and has refunded existing bonds on eight prior occasions since 2001.
“When we work together to benefit students, good things happen,” said PCCD’s Interim Chancellor Dr. Jannett N. Jackson. “Ultimately, this sale will fund upgraded facilities for teaching and learning, helping students achieve their dreams."
Dr. Jackson expressed gratitude to Acting Vice Chancellor of Finance and Administration Dr. Nathaniel Jones III, Associate Vice Chancellor of Finance Adil Ahmed, Interim Vice Chancellor of General Service Atheria Smith, General Counsel Royl L. Roberts, Esq., and the District’s bond program manager AECOM who worked tirelessly to make this successful sale happen.
Dr. Jackson also thanked Dr. Cindi Napolli-Abella Reiss and PCCD’s Board of Trustees for their commitment to ethical governance and fiscal responsibility which have been essential components in improving the value of PCCD bonds in the bond market.
Prior to this sale, Fitch Ratings affirmed PCCD’s Issuer Default Rating at AA- and elevated the Rating Outlook to Stable. S&P Global Ratings also affirmed their rating of AA- and elevated the PCCD’s Outlook to Stable. These changes represent the first positive movement of PCCD’s debt issuance ratings since 2013 and are a direct result of improvements in the District’s governance and fiscal management over the past three years. These improvements have also resulted in positive adjustments to the accreditation status of PCCD colleges.
The bonds were sold with an all-in true interest cost of 4.696%. The bonds will mature on dates ranging from 2023 to 2052 and bear interest rates from 5.00% to 5.50%. The bonds were initially offered to investors at yields ranging from 3.21% to 4.83%.
PCCD was served by municipal advisors at Backstrom McCarley Berry & Co., LLC and by bond counsel at Curls Bartling P.C. and Orrick, Herrington & Sutcliffe LLP. The offering was underwritten by Siebert Williams Shank & Co., LLC and Barclays Capital Inc. (as co-senior managers), and JP Morgan (as co-manager).
Members of PCCD’s financing team will conduct a presentation on this bond sale to the Peralta Community College Board of Trustees at their December 13, 2022 meeting. For information about how to attend this meeting, please visit https://peralta.edu/boardoftrustees/meeting-information.
For more information about PCCD’s bond-financed capital projects, please visit https://build.peralta.edu.