FLINT TWP. — The Board of Education of Carman-Ainsworth Community Schools announced the successful sale of its 2015 Refunding Bonds in the amount of $9,650,000, according to a press release.
The Bonds will be used to refinance a portion of the school district’s outstanding 2005 Refunding Bonds and to pay the costs of issuing the Bonds.
The 2015 Refunding Bonds reduced C-A’s interest expense approximately $950,346 for the taxpayers through lower debt payments over the next 5 years. In the two previous selling of refunding bonds, the school district reduced interest expense about $910,765 in 2011 and $813,210 in 2012.
In preparing to sell the 2015 Refunding Bonds, C-A officials working with their financial advisor, Stauder Barch & Associates, requested that Moody’s Investors Service (“Moody’s”) evaluate the school district’s credit quality. Moody’s assigned C-A the underlying rating of “A3”. The rating agency cited the school district’s recent operating surplus, enrollment and rapid principal amortization of its debt burden in their rationale for this rating level.
The district’s financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the financial advising firm, Stauder Barch & Associates, Inc. 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 1.78% with a final maturity of 2020 for the Bonds (a repayment term of approximately 5 years).
“Carman-Ainsworth Community Schools’ Bonds were well received by the bond market,” said Brenda Voutyras, Managing Director for Stifel s, “We were able to take advantage of historic low rates that met the goals of the district and resulted in a very nice savings for its taxpayers.” — R.S.