Prince George’s County Public Schools recently announced a $660 million taxable sustainable revenue bond deal that will facilitate the construction of eight new schools. This initiative, made possible through a public-private partnership, aims to address the growing demand for educational facilities in the county.
Financial Partnerships and Bond Structure
Wells Fargo and TD Securities are the lead underwriters for the project, with Squire Patton Boggs providing legal counsel. The bonds, totaling $663.465 million, are set to be issued via the Maryland Economic Development Corp. The project is backed by Progressive Education Partners (PEP), the borrower responsible for designing, constructing, financing, operating, and maintaining the eight new schools.
Plenary Americas, the developer of the project, holds a stake in PEP and is committed to enhancing the quality of education in Prince George’s County. The project agreement, which extends until 2056, includes provisions for community equity investment programs that will benefit both school faculty and staff and local residents.
The Series 2024 Bonds will fund the design and construction costs of the new schools, with maturities ranging from 2029 to 2056. The issuance of taxable municipal bonds has seen fluctuations in recent years, with increased demand from international buyers and investors seeking impactful projects like this one. The lack of taxable supply in the market has made these bonds particularly attractive, reflecting a positive outlook for the project.
The construction of eight new schools will provide 1.03 million square feet of educational space, accommodating approximately 8,150 students. These new facilities will replace outdated schools in need of modernization, offering improved learning environments for both students and faculty. Additionally, the project is expected to meet environmental standards, including achieving a LEED silver designation, to promote sustainability and eco-friendly practices.
The $660 million bond deal by Prince George’s County Public Schools represents a significant investment in education infrastructure and community development. With a focus on sustainability, community impact, and educational excellence, this project sets a positive example for future initiatives in the county. The involvement of private partners, financial institutions, and governmental entities underscores the collaborative effort to support the growth and well-being of students in Prince George’s County.