Financial rating helps $18M school bond sale

by Marianne Gasaway

An excellent Standard and Poors (S&P) rating and favorable bond climate helped the Clear Lake School District receive an extremely good bid on its sale of $18 million in general obligation bonds.  The bond issuance was approved by voters in March to support a variety of school building projects, as well as community wellness center done in partnership with the City of Clear Lake.

The School Board approved the sale of the bonds to Robert W. Baird & Co. Inc., of Milwaukee, Wis., during a special meeting held Wednesday, May 27.  The firm submitted the lowest of five bids for the bonds.  Its winning bid has a 1.94 percent interest rate.  Other bids ranged from 1.97 to 2.59 percent.

Matthew Gillaspie, from the district’s financial advisor for the bond, Piper Sandler, reviewed details of the sale with the Board.

“Congratulations to you guys, especially in this COVID-19 environment, on a really, really successful bond issue for your district,” he said. “Good luck with your project.”

Gillaspie explained the low interest rate will allow the district to save an estimated $2.1 million in interest over the 20-year span of the bonds.   

The original debt service estimate for the bonds had total interest cost at $6.7 million and total net spendable proceeds of $17.6 mil

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