Final Legacy 2017 Bonds Sold

Final Legacy 2017 Bonds Sold At 2.76 Percent Interest
Posted on 08/23/2017
This is the image for the news article titled Final Legacy 2017 Bonds Sold At 2.76 Percent InterestMarshall ISD’s Board of Trustees took action to authorize the issuance of the remaining portion of bonds approved by voters in May of 2015 during the board’s regular August meeting held Monday evening in the Pat Smith-Gasperson Board Room.

The final issuance of bonds, for the amount of $9.5 million, are rated AAA by Standard & Poor’s based upon the Permanent School Fund Guarantee Program. In addition to the AAA rating, Marshall ISD’s AA- underlying credit rating was reviewed and affirmed by Standard & Poor’s.

The sale completes the $109,210,000 approved by MISD voters in May of 2015 to fund the Legacy 2017 building projects, which are expected to officially open next month.

According to Mr. Brian Grubbs, Managing Director of SAMCO Capital Markets, Inc., the bonds were sold at an interest rate of 2.76 percent, which is well below the 4.25 percent rate used in the pre-bond election budget planning of 2015.

“Taking into account the very strong credit ratings of the District due to very strong reserves, overall moderate debt burden and conservative budgeting practices, Marshall ISD continues to remain below the budget communicated to the taxpayers of the District for the May 2015 bond election,” Grubbs informed the school board on Monday.

Due to the lower interest rate achieved with the three separate issuances of bonds for the program, Marshall ISD will see a savings of over $4.2 million in total interest cost when compared to the pre-election planning for the project.

The bond program funded the construction of four new schools: Marshall Junior High School, David Crockett Elementary School, Price T. Young Elementary School and William B. Travis Elementary School, as well as the renovation of Sam Houston Middle School to serve as a new Sam Houston Elementary School. All five schools are set to open in September.