Third Bond Issuance Results (April 23rd and 25th, 2019)
Coppell ISD sold $83,865,000 in bonds April 25, which marked the last of three issuances from the 2016 Bond election and refunded $20,640,000 from the 2009A and 2009B Bond Series.
According to district CFO Diana Sircar, the market on April 25th was very favorable for municipal bonds. The True Interest Cost (TIC) for the new issuance was 3.12%, which was lower than expected.
In addition, a refunding of the 2009A and 2009B bond series on April 23rd produced more savings than originally anticipated. The annual savings will vary each year between $227,331 and $233,930, for a total savings of approximately $3,457,217 or a net present value savings of $2,847,366. This exceeded the highest projected savings presented to CISD Board of Trustees March 25, which predicted a net present value savings of $2,386,056.
Sircar attributes the favorable bond sale and refunding to the market for bonds at the time of the sale and CISD’s strong, stand-alone credit ratings of AA+ from the Standard and Poor’s (S&P) and Fitch credit rating agencies.