In
preparing to sell the 2016 School Building and Site and Refunding Bonds, the
School District, working with its financial advisor, H.J. Umbaugh &
Associates, requested that Standard & Poors Ratings Services ("S&P") evaluate the School District's credit quality. S&P assigned the School District’s rating
of "AA-" with a stable outlook. The rating agency cited the School
District's strong incomes and good financial management practices in their rationale for rating the
School District.
“We had a great team working on this project”, said Mark Bielang,
Superintendent of Portage Public Schools, “We are pleased that the way the
bonds were structured, priced and sold leverages the taxpayers investment in
Portage Public Schools and allows us to focus on achieving the best outcomes for
our students.”
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, Miller,
Canfield, Paddock and Stone, P.L.C. The
School District's 2016 School Building and Site and Refunding Bonds were sold
at a combined true interest rate of 2.90% with a final maturity of 2040 (a
repayment term of approximately 24 years).
Jeffrey Zylstra, Managing Director with Stifel states the, "Portage
Public Schools' Bonds were very well
received by the bond market. We were
able to take advantage of current low interest rates that met the goals of the
District and provided a lower cost of borrowing than originally anticipated.
