Elsie, Michigan – The Board of Education of Ovid-Elsie Area Schools is proud to announce the successful sale of its 2015 Refunding Bonds in the amount of $8,170,000. The Bonds will be used for the purpose of refunding a portion of the School District’s outstanding 2005 Refunding Bonds and to pay the costs of issuing the Bonds. The 2015 Refunding Bonds reduce the School District interest expense approximately $1,013,469 for the taxpayers and will occur through lower debt payments over the next 11 years.
In preparing to sell the 2015 Refunding 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 incomes and strong wealth levels, very strong available fund balance and good management practices and policies in their rational for rating the School District at this level.
“Taking advantage of lower interest rates is just good business. Our Board of Education is very astute and works hard to ensure maximum savings to the District and community,” said Superintendent Dr. Ryan Cunningham. “We work hard to be fiscally responsible as an executive committee.”
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, Inc., and the law firm serving as bond counsel, Thrun Law Firm, P.C. The School District’s 2015 Refunding Bonds were sold at a true interest rate of 1.93% with a final maturity of 2025 (a repayment term of approximately 11 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 resulted in a very nice savings for the District and its taxpayers.”