The Northville Public Schools Board of Education is proud to announce the successful sale of its 2019 School Building and Site Bonds, Series II, in the amount of $52,740,000 as authorized by the voters of the school district on November 7, 2017. The 2019 School Building and Site Bonds, Series II, representing the second series of bonds under the 2017 authorization, are being issued for the purpose of erecting, furnishing and equipping additions to and remodeling, furnishing and refurnishing, and equipping and re-equipping school facilities; acquiring and installing instructional technology in school facilities; purchasing school buses; and erecting, furnishing, equipping, developing, and improving playgrounds, sites, and athletic fields and facilities; and paying the costs of issuing the bonds.
In preparing to sell the 2019 School Building and Site Bonds, Series II, the school district, working with their municipal advisor, PFM Financial Advisors LLC, requested that S&P Global Ratings, acting through Standard and Poor's Financial Services LLC ("S&P") evaluate the school district's credit quality. S&P assigned the School District the rating of "AA-" with a stable outlook. The rating agency cited the school district's very-strong-to-extremely strong economy, consistently very strong general fund balance and good management practices and policies in their rationale for rating of the school district at this level.
“The positive financial rating for the district’s bond issue contributed to the opportunity to sell the bonds at a favorable rate, maximizing the bond dollars targeted directly toward upgrading school facilities, enhancing existing school security, and providing students across the district with modern learning environments,” said Northville Superintendent Mary Kay Gallagher. “Our primary goal is to support learning for all students in a manner that prepares them for meeting the expectations and demands of colleges, universities and employers now, and in the future. These improvements will enhance Northville Public Schools’ tradition of excellence, while honoring our Board of Education’s commitment to strong stewardship of the community’s investment in our schools.”
The 2019 School Building and Site Bonds, Series II, were sold at a true interest rate of 3.50% -- among the lowest interest rates achieved by any Michigan K-12 issuer this year – with a final maturity of 2043 (a repayment term of approximately 24 years). The lower interest rate will result in bond payments for the district that are $3.7 million lower for this series compared to the projection from mid-November.
The school district's financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the financial advising firm, PFM Financial Advisors LLC and the law firm serving as bond counsel, Thrun Law Firm, P.C. Additionally, Raymond James served as a co-manager for the bond issue.
“Northville Public Schools’ bonds were sold at an opportune time in the bond market,” said Brodie Killian, Managing Director with Stifel. “The district was able to enter the bond market after a recent decline in interest rates. The financing met the goals of the district and resulted in a cost of borrowing that was considerably lower than originally anticipated.”