I am pleased to announce the successful sale of the 2018 Refunding Bonds in the amount of $6,415,000. The Bonds are being issued for the purpose of currently refunding a portion of the School District’s outstanding 2008 Refunding Bonds and to pay the costs of issuing the Bonds. The 2018 Refunding Bonds reduce the School District interest expense over $368,000 for the taxpayers and will occur through lower debt payments over the next six years.
In preparing to sell the 2018 Refunding Bonds the School District, working with their financial advisor, PFM Financial Advisors LLC, requested that S&P Global Ratings, acting through Standard and Poor's Financial Services LLC ("S&P") evaluate the School District's credit quality. S&P assigned the School District the outstanding underlying rating of "A+". The rating agency cited the School District's stable enrollment trend, strong reserves and moderate debt in their rational for rating of the School District at this level.
I’m so thrilled that for the third year in a row we were able to refund bonds and save the taxpayers of Cedar Springs an additional $368,000 over the next six years! When added to the savings of $680,000 in 2017 and $2.5 million from the 2016 refunding, that’s over $3.5 million dollars in total savings for the taxpayers of Cedar Springs.
The School District's financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the financial advising firm, PFM Financial Advisors LLC and the law firm serving as bond counsel, Thrun Law Firm, P.C. The School District's 2018 Refunding Bonds were sold at a true interest rate of 2.015% with a final maturity of 2024 (a repayment term of approximately six years).
Jeffrey Zylstra, Managing Director with Stifel states, "Cedar Springs Public Schools’ Bonds were well received by the bond market. We were able to take advantage of current interest rates that met the goals of the District and resulted in a nice savings that will be passed on to the District's Taxpayers."