School bonds refinanced at lower interest

Parish taxpayers will realize a savings of more than a half million dollars over the next 14 years on the retirement of school board bonds as a result of action taken earlier this month by the board.
At their meeting of Oct. 4, board members accepted the recommendation of bonding attorney Grant Schlueter to refinance two 20-year bond issues originally sold in 2010 and 2011, each for $10 million.
When originally issued, the 2010 bonds carried an interest rate of 3.89 percent. The 2011 bonds were sold at 4.217 percent.
Schlueter told board members that a more favorable bond market and the school system’s strong bond rating had attracted a 2.79 percent interest rate on the refinancing deal for the remaining 13 and 14 years of the bonds.
The reduced interest rate will save $548,000 in payments over the remaining life of the bonds.
“This was certainly a very successful refinancing,” Schlueter told board members. “And the timing was very fortunate because interest rates went up shortly after your bids were received.”
“These savings,” he added, “will directly benefit the taxpayers of St. Martin Parish.