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Lancaster ISD refinanced bonds, BOK reports more than $5.5 million in savings on latest refunding
Summary
BOK Financial told the Lancaster ISD Board the district's recent refunding reduced interest rates and generated more than $5.5 million in immediate savings; cumulative savings from prepayment and refinancing since 2006 were reported at about $57.2 million. Rating agencies affirmed A1/A ratings.
Representatives from BOK Financial reported to the Lancaster ISD Board of Trustees that the district executed a refunding program last week that lowered its interest rates and produced substantial taxpayer savings.
"The interest rate on the district's bonds were reduced from a 4.62% to a 3.40%," BOK representative Josh McLaughlin said, adding the transaction "generated savings in excess of $5,521,000" on this sale and prepayment activity. He told the board the firm priced the sale on a favorable day in the Treasury market, and that about 24 investors placed orders when the district sold roughly $66 million in bonds.
McLaughlin said the district has realized cumulative savings of about $57.2 million since 2006 through prepayments and refinancings. He also noted that both Moody's and S&P affirmed the district's ratings at A1 and A, citing healthy reserves, liquidity, and a decreasing debt load.
Board members and staff thanked the finance team and BOK Financial for the timing and execution of the refunding; there was no formal board vote on the refinancing presented at the Feb. 12 work session.
