Centennial SD refinancing yields roughly $1.35 million immediate savings, Moody’s notes AA2 rating

Chief Financial Officer Tom Greenwood told the Centennial School District Board on Oct. 14 that a bond refinancing completed Oct. 2 produced significantly stronger savings than originally projected.

Greenwood told directors Moody’s had issued an AA2 rating for the district on Sept. 25 and that the Oct. 2 sale drew strong demand from a broad group of buyers, including Northern Trust, BlackRock, Breckenridge and Nuveen. The sale generated roughly $1,351,621 in savings on that series and, combined with a September refinancing, the district estimates approximately $5,483,000 in total savings over time.

Greenwood said that stronger-than-expected market conditions, along with the district’s financial profile and the Moody’s rating, increased investor demand and pushed savings higher, adding that market timing helped: ‘‘Sometimes it’s better to be lucky than good,’’ he said. Greenwood also said the rating alone — compared with a one- or two-notch downgrade — could be worth between a half-million dollars and about a million dollars in interest costs over the life of the bonds.

Budget impact: Greenwood said the refinancing will produce roughly $111,000 in savings in the current budget year (2025–26) compared with prior debt service costs. He noted that the $5.48 million figure represents savings spread across the life of the bonds, not an immediate one-time cash deposit.

Process and next steps: Greenwood said the district worked with financial advisors at PFM and underwriting partners at PNC to market the sale. Board members thanked Greenwood and the finance team; Greenwood said the district will continue to monitor debt levels and work to reduce the district’s debt-service ratio over time.