Berkeley County Schools’ Sells Bonds
April 13, 2015
MONCKS CORNER, SC – Berkeley County School District successfully refunded some 2006 bonds for $89,560,000.
The District reduced its overall bond interest rate percentages from 2006 rates of 5.05 percent to 3.04 percent as of March 2015, an overall interest reduction of 2.01 percent. The District also shortened the term of the bonds by two years, from a 2031 payoff to a 2028 payoff. The overall gross savings is $18,456,438.
Superintendent of Berkeley County Schools, Dr. Rodney Thompson, said, “Just as important as the savings is the capacity that is created within our debt service. More capacity gives the district options when dealing with the overwhelming growth in our county.”
The sale of the District’s bonds is a result of Standard & Poor’s Ratings Services upgrading the district’s credit ratings. The better the credit rating assigned by Standard & Poor’s Services, the lower the interest rate for the district, directly passing on those savings to taxpayers in Berkeley County.
Chief Finance Officer, Brantley Thomas said, “We priced on Wednesday, March 25, 2015 and we will close on Tuesday, April 14, 2015. If we had been a day late in pricing, we would have never gotten these results. Our timing was critical. I owe the success of the refunding and timing to our financial advisors for watching the market, bond law firms that were ready at a moment’s notice to prepare documents and render opinions, and our underwriters who marketed the bonds and, in the end, brought some of the bonds to market themselves in their retail branches. Securing Assets of Education (SAFE Board) was a tremendous help also. SAFE Board Chairman, Shawan Gillians, Vice Chairman, Marc Hehn, Secretary, Christine Brown and Director, Jerry Prosser were great.”
Standard & Poor’s raised its rating of Berkeley County School District’s credit program one level, from ‘AA-‘ to ‘AA’. The company also raised its long-term rating on the district’s appropriation debt from ‘A+’ to ‘AA-‘. These ratings dictate the interest rates the district is assigned.
