The Wayland Un
ion school district has sold its 2016 refunding bonds, Series A and Series B,
saving taxpayers $6,278,000 in interest.
Wayland schools sold $22,455,000 refunding bonds, Series A and its $23,920,000 refunding bonds, Series B April 28 in the capital markets. The 2016 bonds will close on May 31. The 2016 refunding bonds, Series A refunded the district’s 2008 school building and site bonds, the 2016 refunding bonds, Series B refunded the district’s outstanding school loan revolving fund obligation.
“The sale was very successful,” said Superintendent Norm Taylor. “The 2016 refunding bonds, Series A and B, reduced interest expense and cost avoidance by more than $6.27 million. We are pleased with the outcome of the bond sale and the resulting savings for Wayland Union School District’s taxpayers.”
Standard and Poor’s Ratings Services (S&P) applied the districts rating of an (“A+“) based on the district’s underlying rating and a rating of (“AA-“) based on participation in the Michigan School Qualification Loan program. The Wayland Union bonds are qualified for the program and benefit by receiving the additional rating and security of the state program backing.
The Series A bonds were sold at a true interest cost of 2.23%, the Series B Bonds were sold at a true interest cost of 2.12%.
Taylor said, “Wayland Union was fortunate to find a receptive bond market on the day of pricing. April municipal bond issuance has been very low and investors had cash available to invest. Our taxpayers have historically been very supportive of the district. The bond sale is great news as we have substantially reduced the interest burden for them going forward.”
