Daily Progress, Jacksonville, TX

Local News

June 24, 2014

District saves more than $1M in interest by refinancing bonds

BULLARD — At the Bullard ISD Board of Trustees meeting May 19, the trustees took action to authorize the Administration to proceed with refinancing some of the existing bonds to lower the interest rate and to provide interest cost savings.

This authorization is the first of potentially several more refunding opportunities that the school district will consider over time in its bond management program.

During the process of issuing the refunding bonds, the District’s credit rating of “A1” was affirmed by Moody’s Investors Service. Additionally, the bonds were rated “Aaa” based upon the Permanent School Fund Guarantee, and were sold in a public offering

on June 10.

By lowering the interest rates of 5.00 percent to 5.25 percent on a portion of the existing bonds down to an average interest rate yield of 3.04 percent, the District was able to save $1,115,655 in interest cost over the remaining life of the bonds, which results in an average annual savings of $68,011.

 

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