The long-term rating reflects the inherent strength of the Magnolia Independent School District’s (the “District’s” or MISD’s) unlimited tax ad valorem payment pledge, the strong growth trend and robust socioeconomic characteristics of the tax base, and conservative budgeting practices that have supported sound reserves and liquidity. Counterbalancing these strengths is the District’s considerable increase in leverage following this sizable bond issuance, which elevates the debt burden and fixed-cost levels.
Proceeds of the Series 2026 Bonds (the “Bonds”) will be used to (i) fund capital improvements and additions to school facilities and equipment, including a new high school, two new elementary schools, and new school buses, and (ii) pay costs of issuance.
Unlimited Tax School Building Bonds, including the Bonds, are payable from a direct and continuing pledge of ad valorem taxes levied on all taxable property within the District, without limitation as to…
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