Allendale, Michigan – The Board of Education Allendale Public Schools is proud to announce the successful sale of its 2015 Refunding Bonds, Series A in the amount of $6,110,000 and 2015 Refunding Bonds, Series B in the amount of $42,625,000. The 2015 Refunding Bonds, Series A reduce the School District interest expense approximately $395,008 for the taxpayers and will occur through lower debt payments over the next 9 years.
The Series B Bonds are being issued for the purpose of refunding certain outstanding indebtness of the
School District to the State of Michigan under the State of Michigan School Bond Qualification and
Loan Program and to pay a portion of the costs of issuing the Bonds. The Series B Bonds reduce the
repayments to the State of Michigan by a total estimated amount of $4,932,593. The estimated
reduction in repayments is based upon the current School Bond Loan Fund interest rate of 3.41%. The
total savings between the two series is $5,327,601 in future payment reductions.
In preparing to sell the 2015 Refunding Bonds, Series A and Series B, the School District, working
with their financial advisor, H.J. Umbaugh & Associates, requested that Standard & Poor’s Rating
Services evaluate the School District’s credit quality. S&P assigned the School District the underlying
rating of “A-“. The rating agency cited the School District’s stable local economy, growing enrollment
and consistently balanced operating budget in their rational for rating the School District at this level.
Allendale’s Board of Education and Administration are very grateful for the support of Representative
Roger Victory in changing current law regarding the state’s School Bond Loan Fund regulations.
Representative Victory’s legislation enabled the District to go to the bond market for better interest
rates and future savings for taxpayers on the District’s debt millage. Dr. Dan Jonker, Superintendent,
said, “Representative Victory was very instrumental in working with the Michigan Treasury
Department to address specific portions of the 2012 law that adversely impacted Allendale taxpayers
and successfully made those changes law with Public Acts 96 and 97 of 2015.”
The School District’s financing was conducted by the Michigan investment banking office of the
brokerage firm, Stifel, the financial advising firm, H.J. Umbaugh & Associates and the law firm
serving as bond counsel, Thrun Law Firm, P.C. The School District’s 2015 Refunding Bonds,
Series A were sold at a true interest rate of 2.51% with a final maturity of 2024 (a repayment term of
approximately 9 years) and the 2015 Refunding Bonds, Series B were sold at a net federally taxable
interest rate of 2.41% with a final maturity of 2020 (a repayment term of approximately 5 years).
Brenda Voutyras, Managing Director with Stifel states, “Allendale Public Schools Bonds were well
received by the bond market. We saw good demand and were able to take advantage of current low
interest rates that resulted in a very nice savings for the District and its taxpayers.”