The sale of the federally taxable refunding bonds was approved by the TK Board of Education. Refunding bonds are somewhat similar to refinancing a home mortgage to take advantage of lower interest rates.
The bonds reduce the debt repayments owed by the school district by an estimated $1,344,000. This estimate is based on assumptions regarding the growth of the district’s taxable value and the reduction in debt interest rate.
Superintendent Rob Blitchok said he’s very pleased with the efforts. “This shows our commitment to making sure we are spending all our funds wisely and monitoring our debt levels carefully.”
The School District's financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the municipal advising firm, PFM Financial Advisors LLC, and the law firm serving as bond counsel, Thrun Law Firm, P.C. The School District's 2019 Refunding Bonds were sold at a federally taxable interest rate of 2.46% with a final maturity of 2029 (a repayment term of approximately 10 years).
Jeffrey Zylstra, Managing Director with Stifel states, "Thornapple Kellogg Schools’ Bonds were well received by the bond market. We were able to take advantage of current low fixed interest rates that met the goals of the district and resulted in significant savings that will be passed on to the district’s taxpayers."