First Issuance of MiraCosta College’s Measure MM Bond Sales
Yesterday, August 22, the first issuance of MiraCosta College’s Measure MM bonds were sold. Within 29 minutes, there were $100 million in offerings and within 75 minutes, the bonds were oversubscribed in all categories of bond maturities (ranging from one to 25 years). The sale continued, resulting in a total of $287 million in orders, nearly three times as many orders than the college had bonds to sell. A broad investor base participated in the purchase of the college’s bonds, including professional money managers, bank trust departments, and property and casualty insurance companies.
Due to the increased demand, the underwriters were able to lower the overall interest rate on the bonds by approximately 0.05 percent, saving the taxpayers an additional $600,000.
"It was a great day to sell bonds. Investor demand for the district's Measure MM bonds exceeded the bond offering, lowering interest rates and debt service for the taxpayer. explains Joanna Bowes, managing director for Manager Education Group, KNN Public Finance LLC.
Prior to the sale, MiraCosta Community College earned the highest ratings from both Moody’s Investors Services (Moody’s) and Standard & Poor’s Global (S&P). Moody’s and S&P rated MiraCosta College as AAA, the highest issuer credit rating. Both rating services recognized the district’s solid financial position, experienced management team and construction track record in their reports.
MiraCosta College President Dr. Sunita V. Cooke comments, “Our goal is to manage all our resources prudently and it is critical for us to keep the cost of Measure MM repayment as low as possible for the residents of north county who voted to invest in higher education facilities.”
In November 2016, Proposition MM approved $455 million by the district’s local taxpayers. The bond money will go towards modernizing aging facilities and upgrading instructional technology. Through the implementation of the Facilities Master Plan, the district will construct career training facilities for science, nursing, health care, engineering and skilled trades; improve job training, counseling and support services for veterans; modernize instructional technology in math, science and technology; repair or replace leaky roofs, worn-out floors, outdated restrooms, faulty electrical systems and deteriorating plumbing lines; and improve access for students with disabilities.