Bond Refinancing - March 19 2021

Refinancing Creates Bond Interest Savings For MISD
Posted on 03/19/2021
This is the image for the news article titled Refinancing Creates Bond Interest Savings For MISDMarshall ISD has saved a total of over $11.5 million in interest cost savings on the district's Legacy 2017 bond program due to a refinancing of the bonds from earlier this year.

The Legacy 2017 program, which created three new elementary schools, a new junior high school and renovation of the former Sam Houston Middle School into an elementary STEM campus, were financed from a Series 2015 bond approved by MISD voters in May 2015.

On Jan. 12, MISD successfully completed the refinancing for interest cost savings. The refinancing, approved by the MISD Board of Trustees, replaced $58,625,000 of principal on the bonds that were outstanding at an interest rate of 4.62 percent with new bonds at an interest rate of 1.78 percent. 

Additionally, the refinancing of the Series 2015 bonds shortened the original payback term from 2040 to 2038. With the lowering of the interest rate and the shortening of the payback term, MISD realized a total savings in interest cost on the bonds of $11,532,340 to MISD taxpayers.

The entire bond sale transaction was reviewed and approved by the Texas Attorney General's office and closed on Feb. 11.

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