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Southeast Polk board approves $51 million bond sale; Piper Sandler wins at 3.978% TIC
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Summary
Financial advisor PFM reported eight bids for a $51 million general obligation bond offering; Piper Sandler submitted the winning bid at a true interest cost of 3.978%, leaving approximately $52.59 million for district projects after premiums and reduced underwriter discounts.
The Southeast Polk Community School District board approved the recommended winning bid for a competitive sale of about $51 million in general obligation bonds at its April 9 meeting.
Suzanne Gerlach of PFM told the board that the sale drew eight bids and that the district's true interest cost (TIC) across bids ranged roughly from 3.97% to 4.15%. "The winning bid came from Piper Sandler out of Minneapolis, Minnesota, at a true interest cost of 3.978%," Gerlach said, adding that the sale produced premiums and lower underwriter discounts that increased available project funds.
Gerlach said the district will have roughly $52,589,539 to spend on projects after premiums and pricing adjustments and that the debt service levy in the FY27 budget will pay the bonds. Board members asked for dollar equivalence on interest-rate movements; Gerlach estimated the present value of 1 basis point is about $50,000, and a 10-basis-point swing would equal roughly $500,000.
A motion to approve the recommended winning bid was made and carried by the board. No board member identified an objection on the record during the vote.
Administration told the board the district’s double-A minus rating and strong bidding syndicate interest helped achieve favorable pricing; PFM recommended finalizing the award so Piper Sandler could place the bonds with its customers.
