Results in Savings of $406,158 to District
At the Danbury ISD Board of Trustees meeting on September 21st, the Trustees took action to authorize the Administration to proceed with refinancing the existing bonds to lower the interest rate and to provide interest cost savings.
During the process of issuing the refunding bonds, the District was assigned a credit rating of “A+” by Standard & Poor’s Ratings Services. Additionally, the bonds were rated “AAA” based upon the Permanent School Fund Guarantee. The District conducted a competitive sale on October 15th and received eight bids from investment banks throughout the United States.
By lowering the average interest rate of 4.18% on the existing bonds down to an average interest rate yield of 2.03%, the District was able to save $406,158 in interest cost over the remaining life of the bonds, which results in an average annual savings of $28,646. Due to the very low interest rate market, the savings achieved by the District was well above the early projection amount of $235,000.