Baldwin County Public Schools Refinances Debt with Savings of $10.43 Million
Bay Minette, January 15, 2015: Baldwin County Public Schools announced the refinancing of $89,450,000 of its 2007 Construction Bond Issue at a lower interest rate, saving the tax payers in excess of $10.43 million dollars, over the remaining term of the loan. The 2007 Construction Bonds were originally issued at a rate of 4.82% and were refinanced on Wednesday at 2.90%. Tax-exempt interest rates were near all-time lows during the pricing of the warrants.
“The system did not increase our debt or extend the maturity of our debt, we simply took advantage of a low interest rate environment, which allowed us to pay less interest over time,” said John Wilson, Chief School Financial Officer of Baldwin County Public Schools. “We want to be responsible managers of the money that the system is entrusted with, and this refinancing is evidence that we take this responsibility seriously,” added Wilson.
The refinanced bonds were rated Aa3 and AA- by Moody’s and S&P, respectively. “The school system’s financial position is healthy,” said Moody’s in its review of Baldwin County Public Schools credit. At the same time it noted the upcoming challenges caused by “anticipated significant enrollment growth.”
Matt Adams, Managing Director at Raymond James, the Board’s underwriter, said he “saw a tremendous amount of appetite from many different types of investors yesterday due to this board and this central office’s reputation for strong financial management.”
At the same time we are exhausting every effort to run the school system efficiently.”
Contact: John Wilson, CPA Chief School Financial Officer
Baldwin County Public Schools
Phone: (251) 580-1664
Fax: (215) 937 0318
2600 N Hand Ave
Bay Minette, AL 36507