The Morgan Hill Unified School District announced the successful sale of $37.57 million of 2023 General Obligation Refunding Bonds. The transaction refinances outstanding Series A bonds issued from the 2012 Measure G voter authorization, according to a press release from MHUSD.
Through the bond refinancing, the district will have saved taxpayers $3.75 million over the full term of the bonds, or about $2.77 million in net present value terms, district staff said. That amount represents 6.36% of bonds refunded. The savings achieved through the refinancing will reduce annual debt service payments for taxpayers and did not extend the final maturity date which is set for Aug. 1, 2042.
For the 2023 refinancing transaction, the district received more than $148 million in orders from 18 different institutional investors in addition to orders from individual retail investors, the press release continues. The strong investor demand allowed for a reduction of yields over the course of the pricing process, strengthening the final bond refinancing results.
“Our district is proud to maintain our good financial standing. Refinancing our bonds benefits our community by saving our taxpayers’ money while allowing us to continue to provide excellent programs for our students,” said Dr. Carmen Garcia, Superintendent of MHUSD.
The District’s 2023 General Obligation Refunding Bonds were rated Aa1 (stable) by Moody’s Investors Service, the second-highest rating Moody’s assigns, district staff said.
The underwriting was led by Stifel as sole manager. KNN Public Finance served as Municipal Advisor for the transaction, while Stradling served as Bond and Disclosure Counsel.
