BOARD ACTION SAVES FRIENDSWOOD ISD 12.5 MILLION DOLLARS
February 23, 2016
In December 2015, the Friendswood ISD Board of Trustees voted unanimously to approve the refunding of its Series 2008 Unlimited Tax Schoolhouse Bonds. The refunding bonds, which were priced on February 23, 2016, will reduce the District’s overall debt interest rate considerably. The refunding will save $12.5 million over the life of the issuance. According to the Senior Underwriter, Raymond James & Associates, Inc., it was an opportune time to be in the market as tax-exempt interest rates are nearing historical lows.
In addition, Standard and Poor’s, one of America’s leading financial services companies, raised its underlying rating of the District’s debt. As published in their report, S&P stated “the upgrade reflects our opinion of the District’s gradual reduction of the debt burden, coupled with their ability to maintain a very strong reserve level of 25% of operating expenditures over the past five years.” This rating declaration also recognizes the District’s sound financial management policies and practices in several key areas and is an indication of Friendswood ISD’s commitment to ensuring the District’s long-term financial health. S&P stated the outlook on all rating is stable.
Superintendent Trish Hanks stated, “This refinancing serves our taxpayers well and appreciates the leadership of the Board.” A bond rating, similar to a person’s credit score, represents the credit worthiness of the Districts bonds to potential investors based on economic base, financial indicators, outstanding debt, and financial management policies and practices.