AISD refinances prior bonds to save $8 million

AISD refinances prior bonds to save $8 million
Posted on 09/23/2020
AISD refinances prior bonds to save $8 million

In a time when funding for education appears to be headed for an uncertain future, the Alvarado ISD Board of Trustees took a step toward assuring the school district’s financial good standing will remain intact.

At its September meeting, the Board of Trustees approved the refinancing of portions of two prior bonds and one full prior bond that will save the district at least $8 million over the life of the bonds.

“The refinancing of these bonds is huge for Alvarado ISD taxpayers and demonstrates continued great stewardship by our Board of Trustees and finance team,” said Dr. Kenneth Estes, Alvarado ISD Superintendent.

Doug Whitt of SAMCO Capital Markets Inc., the district’s financial advisor, approached Dr. Estes and Chief Financial Officer Rodney Toon in August with a plan to take advantage of record-low interest rates.

The refinance will lower the district’s bond payments by approximately $400,000 a year and allow for the restructuring of payments which enables the district to go out for future bonds needed to address projected growth.

“The savings over the life of the bonds is incredible and provides flexibility for the district as we prepare for future growth,” Estes said.

2018 © All Rights Reserved | Website Design By: School Messenger | Login