Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Bonds And Finance topic
No spam. Unsubscribe anytime.
Board approves $100 million series 2026B school building bonds; sale yields $101.8M deposit for construction
Summary
The board authorized issuance and sale of $100 million in general-obligation school building bonds (series 2026B). Advisors reported a competitive sale with a true interest cost of 4.21% and a reoffering premium that produces a $101.8 million deposit to the construction fund.
The Wayzata School Board on Aug. 10 approved a resolution authorizing the issuance and sale of $100,000,000 in general-obligation school building bonds, series 2026B, the first phase of funding tied to the April referendum.
Trevor Peterson, Executive Director for finance and operations, and municipal adviser Matthew Hammer (Ehlers) reported that the district received 10 bids in a competitive sale; the low bidder was JPMorgan and the true interest cost (TIC) for the issue was 4.21%, about 20 basis points below the pre-sale estimate. As a result of the sale's reoffering premium, the district is depositing approximately $101.8 million to the construction fund—more than the par amount—while the borrowing cost remains the stated TIC.
Hammer noted the district maintained a Moody’s AAA underlying rating and described the state's credit-enhancement program that results in a slightly different enhanced rating. He also described the bonds' call provisions and an eight-year call that is typical in current market conditions. Board members asked technical questions about reoffering premium, TIC, costs of issuance and Moody’s metrics; advisors answered that the premium net of costs is being deposited to construction accounts.
The board voted by roll call to approve the resolution. The motion carried; one member was absent. The district plans additional sales in future years as part of the multi-year construction program.
