2019 Refunding Bonds

2019 Refunding Bonds
The Board of Education of Covert Public Schools is proud to announce the successful sale of its 2019 Refunding BondsThe Board of Education of Covert Public School District is proud to announce the successful sale of its 2019 Refunding Bonds in the amount of $5,685,000.  The Bonds are being issued for the purpose of currently refunding a portion of the School District’s outstanding 2008 School Building and Site Bonds and to pay the costs of issuing the Bonds. The 2019 Refunding Bonds reduce the School District interest expense by $1,000,695 over the next 14 years.

In preparing to sell the 2019 Refunding Bonds the School District, working with their municipal advisor, PFM Financial Advisors LLC, requested that S&P Global Ratings, a business unit of Standard and Poor's Financial Services LLC ("S&P") evaluate the School District's credit quality.  S&P assigned the School District the underlying rating of "BBB+" with a positive outlook.  The rating agency cited the School District's improved available reserves and balanced operations and designation as an “out-of-formula” district with a large tax base in its rational for rating of the School District at this level.

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, Miller, Canfield, Paddock and Stone, P.L.C.  The School District's 2019 Refunding Bonds were sold at a true interest rate of 2.71% with a final maturity of 2033 (a repayment term of approximately 14 years).

Jeffrey Zylstra, Managing Director with Stifel states, "Covert Public Schools has been waiting patiently for this opportunity to come to fruition.  We were very pleased to be able to bring the bonds to the market at such an opportune time.  The resulting interest rates exceeded the goals of the District and resulted in a nice savings for its general fund."
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