Second Bond Issuance Results (Feb. 13, 2018)
Coppell ISD sold $71,810,000 in bonds Feb. 13, which marked the second of three issuances from the 2016 Bond election and refunded $29,370,000 from the 2007B Bond Series.
According to district CFO Kelly Penny, the market on Feb. 13 was very favorable for municipal bonds. The True Interest Cost (TIC) for the new issuance was 3.518%, which was lower than expected.
In addition, a refunding of the 2007B bond series produced more savings than originally anticipated. The annual savings will vary each year between $315,576 and $318,825, for a total savings of approximately $1,587,000 with a “Net Present Value” savings of 4.88%. This exceeded the highest projected savings presented to CISD Board of Trustees Jan. 22, which predicted a savings of $1,359,335 and a “Net Present Value” of 4.097%.
Penny attributes the favorable bond sale and refunding to CISD’s strong, stand-alone credit ratings of AA+ from the Standard and Poor’s (S&P) and Fitch credit rating agencies.
Details about the bond issuance and refunding will presented at the CISD Board of Trustees Meeting Feb. 26.