Bond refinancing to save schools half million in interest
January 22, 2014
Refinancing more than $9 million in school bonds is expected to save the district more than half a million dollars.
"We are pleased with the results of the sale and appreciate the efforts put forth by our administrative staff and professional team," said Superintendent Dr. Rod Rock.
Clarkston Board of Education voted 6-0, Jan. 13, to approve the sale of $9,270,000 in bonds. The 2014 bonds refinance the district's outstanding 2004 Refunding Bonds at a lower interest rate.
School Board authorized the sale, Oct. 14., and it was negotiated by Fifth Third Securities. The bond deal closes on Feb. 4, at an interest rate of 1.30 percent. The first interest payment is due, Nov. 1, 2014. First principal payment is due May 1, 2015. Interest expense is expected to be $568,533 less than it would have been without the sale.