For further information contact:
John J. Krimmel IV, Superintendent of Schools
Brenda Pyle, Chief Financial Officer
FOR IMMEDIATE RELEASE
AIRPORT COMMUNITY SCHOOLS
2017 REFUNDING BONDS
Carleton, Michigan - The Board of Education of Airport Community Schools is proud to announce the successful sale of its 2017 Refunding Bonds in the amount of $6,930,000. The Bonds are being issued for the purpose of advance refunding portions of the School District’s outstanding 2011 School Building and Site Bonds, Series A and Series C and to pay the costs of issuing the Bonds. The 2017 Refunding Bonds reduce the School District interest expense over $853,185 for the taxpayers and will occur through lower debt payments over the next 14 years.
In preparing to sell the 2017 Refunding Bonds the School District, working with their financial advisor, PFM Financial Advisors LLC, requested that S&P Global Ratings, acting through Standard and Poor's Financial Services LLC ("S&P") evaluate the School District's credit quality. S&P assigned the School District the outstanding underlying rating of "A+". The rating agency cited the School District's good incomes and strong per capita market value; very strong general fund reserves and low debt burden in their rational for rating of the School District at this level.
“Airport Schools and the Board of Education look for every opportunity to save all of our community members’ tax expense. This is the third time since 2003 we have refinanced existing debt to save our taxpayers money. Their support allows us to continue to invest in our school infrastructure, buildings, and programs so Airport Community Schools can remain the educational center of our community for many years to come.” – John Krimmel, Superintendent
The School District's financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the financial advising firm, PFM Financial Advisors LLC and the law firm serving as bond counsel, Thrun Law Firm, P.C. The School District's 2017 Refunding Bonds were sold at a true interest rate of 2.59% with a final maturity of 2031 (a repayment term of approximately 14 years).
Brenda Voutyras, Managing Director with Stifel states, "Airport Community Schools’ Bonds were well received by the bond market. We were able to take advantage of current low interest rates that exceeded the goals of the District and resulted in a nice savings that will be passed on to the District's Taxpayers."