Elsie, Michigan – The Board of Education of Ovid-Elsie Area Schools is proud to announce the successful sale of its 2014 School Building and Site Bonds. The Bonds are being issued for the purpose of installing security measures for, remodeling, equipping and re-equipping and furnishing and refurnishing school buildings and school facilities; acquiring and installing instructional technology and instructional technology equipment for school buildings; purchasing school buses; developing and improving athletic fields and facilities, parking areas and sites, and paying the costs of issuing the Bonds.
In preparing to sell the 2014 School Building and Site Bonds, the School District, working with their financial advisor, Stauder, Barch & Associates, Inc., requested that Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc. (“S&P”) evaluate the School District’s credit quality. S&P assigned the School District the underlying rating of “A+”. The rating agency cited the School District’s good income and strong wealth levels, very strong fund balance and good management practices and policies in their rational for rating the School District at this level.
“We are very pleased with the results. Our work with these companies has led to strong interest on the market and will save our taxpayers considerably,” said Ovid-Elsie Superintendent Dr. Ryan Cunningham.
The School District’s financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the financial advising firm, Stauder, Barch & Associates and the law firm serving as bond counsel, Thrun Law Firm, P.C. The School District’s 2014 School Building and Site Bonds were sold at a true interest rate of 2.92% with a final maturity of 2029 (a repayment term of approximately 15 years).
Brenda Voutyras, Managing Director with Stifel states, “Ovid-Elsie Area Schools Bonds were well received by the bond market. We were able to take advantage of historic low rates that met the goals of the District and provided a lower cost of borrowing than originally anticipated.”
Cunningham added, “We are excited to get things moving along and phase in our projects. We anticipate completing all projects by December 2015”.