PERRYTON ISD bond sale nets about $15 million; adviser says strategy cut two years from term, saved roughly $1.6 million

Summary

At a board meeting, a Live Oak bond adviser reviewed the district's recent bond sale, describing a strategy that shifted principal timing to avoid an inverted yield curve, producing roughly $15 million in proceeds on a par amount of just over $14 million and a stated savings of about $1.6 million over a standard structure.

PERRYTON ISD trustees heard a post-sale presentation from a Live Oak bond adviser outlining results of the district's recent bond sale and the firm's strategy to avoid paying higher short-term rates during a period of an inverted yield curve.

The adviser, John, told trustees the sale took place Aug. 4. He said the bonds had a par amount "just over $14,000,000" and that the structure produced "just over $15,000,000" in proceeds; he said proceeds cover the district's project fund deposit and the costs of issuance. John gave the district a true interest cost (TIC) of 3.6858 percent on the 12 maturities sold.

John said the district's team used a two-part strategy begun in 2023: they sold enough principal to start the projects and lock the first-year tax rate, and deferred principal in the middle maturities (about years 2 through 13) to a later sale. "We sold an initial amount of bonds that got you guys started on your project, and those basically locked in the first year of principal and years 13 through the end," John said, describing the choice to leave certain…

PERRYTON ISD bond sale nets about $15 million; adviser says strategy cut two years from term, saved roughly $1.6 million

Summary

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