The transaction refinances outstanding Series A bonds issued from Measure G
Published on April 23, 2023 on MorganHillLife.com
By Staff Report
Morgan Hill Unified School District saved taxpayers more than $3.75 million by refinancing outstanding bonds in the recent sale of $37.57 million of 2023 General Obligation Refunding Bonds.
The transaction refinances outstanding Series A bonds issued from the 2012 Measure G voter authorization.
Through the bond refinancing, the district saved its taxpayers $3.75 million over the full term of the bonds, or approximately $2.77 million in net present value terms, representing 6.36% of bonds refunded. The savings achieved through the refinancing will reduce annual debt service payments for taxpayers and did not extend the final maturity date scheduled for August 1, 2042.
For the 2023 refinancing transaction, the district received over $148 million in orders from 18 different institutional investors in addition to orders from individual retail investors. The strong investor demand allowed for a reduction of yields over the course of the pricing process, strengthening the final bond refinancing results.
“Our district is proud to maintain our good financial standing. Refinancing our bonds benefits our community by saving our taxpayers’ money while allowing us to continue to provide excellent programs for our students,” said Dr. Carmen Garcia, superintendent of the MHUSD
The 2023 General Obligation Refunding Bonds were rated Aa1 (stable) by Moody’s Investors Service, the second-highest rating Moody’s assigns. Staff worked closely with its financing team to successfully execute the bond refinancing.
The underwriting was led by Stifel as sole manager. KNN Public Finance, served as Municipal Advisor for the transaction, while Stradling served as Bond and Disclosure Counsel.
This story is based on a press release provide April 9 by MHUSD.
