FLINT TWP. — On Nov. 29, Carman- Ainsworth Community Schools successfully closed on a transaction refinancing more than $9.7 million of the bonds voters approved in 2002 to renovate and improve all district school buildings.
Through this transaction that was authorized by the Carman-Ainsworth Board of Education, property owners in the district will save $910,765 in interest over the next 13 years.
In preparing to sell the 2011 Refunding Bonds, district officials, working with their financial advisor, Stauder Barch & Associates, requested that Moody’s Investors Service evaluate the school district’s credit quality. The school district maintained their outstanding underlying rating of “Aa3” from Moody’s. The rating agency cited the school district’s manageable debt burden, and healthy liquidity in their rationale for rating the school district at this level.
The district’s financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, Nicolaus & Company, Incorporated, the financial advising firm, Stauder Barch & Associates and the law firm serving as bond counsel, Collins & Blaha, P.C.
The school district’s bonds were sold at a true interest rate of 3.87 percent with a final maturity of 2024 for the bonds (a repayment term of approximately 13 years).
“Carman-Ainsworth Community Schools’ Bonds were well received by the bond market,” said Brenda Voutyras, Senior Vice President — Managing Director with Stifel Nicolaus. “ We were able to take advantage of current low rates that resulted in a savings level that met the goals of the District.”— Rhonda Sanders