(Schertz) -- The Schertz-Cibolo-Universal City Independent School District was able enter the financial markets to refinance nearly $104 million of its outstanding bonds. The refinancing enabled the District to achieve over $43 million in total interest cost savings over the life of the bonds.
On a present value basis, the savings was over $32 million, or a 24.6% present value savings, well above the minimum 5% target normally used in these types of transactions. SCUCISD was able to take advantage of the continued historic low interest rate market combined with the District’s strong financial credit rating to create these results.
The District has continued to maintain its strong underlying credit ratings of “Aa3” from Moody’s Investors Service and “AA-“ from Fitch Ratings due to its excellent fiscal track record especially during the recent challenging periods of student growth and the ever changing state funding of education. This issue was also sold with the enhanced ratings of “Aaa” from Moody’s and “AAA” from Fitch due to the backing of the Texas Permanent School Fund Guarantee Program.
Duane and Allen Westerman, financial advisors with SAMCO Capital Markets, Inc. assisted SCUCISD with the bond refinancing.