The Edmond Sun

April 3, 2013

Schools obtains record low interest rate on bond bid

Patty Miller
The Edmond Sun

EDMOND — At a special meeting, the Edmond Board of Education accepted a bid for the sale of $26.5 million in bonds securing the lowest interest rate ever obtained by the school district.

Piper Jaffray of Minneapolis, Minn., was the bid winner with an interest rate of 0.935 percent at a March special meeting.

“We are elated to have received such a low interest rate,” said board president Jamie Underwood. “The result for taxpayers is lower costs associated with the sale of bonds to finance construction projects that are necessary to meet the needs of our growing student population.”

On Feb. 12, voters approved an $80 million bond issue that will finance a new elementary and middle school as well as maintain and remodel other campuses in the district-the fourth largest in the state. The bonds are being sold in four separate series. The $26.5 million sale to Piper Jaffray is the first of the four sales.

“To have received such a low interest rate on such a large bond sale is noteworthy,” said Lori Smith, chief financial officer for the district. “It reflects our credit quality, solid financial position and manageable capital improvement needs.”

Standard & Poor’s Ratings Services reaffirmed the district’s AA rating citing strong finances, maintenance of good reserves and low overall debt with rapid principal amortization.