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Mid State staff brief board on $1.5M promissory note sale, AA1 rating
Summary
Board received information that Mid State sold a $1.5 million general obligation promissory note (series 2022A) at an estimated true interest cost of about 3% and that bond rating remained AA1 with stable enrollment; no action was taken beyond receipt of information.
Board members received an informational update on the college’s recent primary-note sale and bond rating. Debbie Brunette of RW Baird presented a final pricing summary for a Jan. 12 primary note sale: a $1,500,000 general obligation promissory note (series 2022A) sold as a parameter sale with a true interest cost of approximately 3% and a 10-year repayment schedule. The presenter noted a stable financial position and enrollment as factors supporting the AA1 rating.
During discussion, a board member observed that among the state’s 16 technical colleges bond ratings range from AAA to AA2 and that Mid State sits in the middle of that range. The college said the 3% interest rate was lower than anticipated and that financing supports debt service and levy mill rate plans. The materials provided to the Board included the final pricing summary and related handouts.
Ending: The Board received the update; Debbie Brunette answered questions before the meeting moved on to other informational items. No vote was required.
