Novato Unified School District Saves Taxpayers Over One Million Dollars with the Issuance and Sale of Refunding Bonds

The Novato Unified School District (NUSD) has completed the issuance and sale of refunding general obligation bonds with a net savings to Novato taxpayers of over $1 million.  Due to interest rates being at historical lows, NUSD determined it was prudent to refund the Series 2011 bonds.  The term of the new issued Bonds is the same as the Series 2011 bonds and will be paid in full in August 2026.  The interest rate, or true interest cost, of the issuance was 1.59%.

Roy Given, the County Director of Finance noted, “I congratulate the School Board and the Financial Advisor in having the foresight to competitively sell their bonds. The lower than expected rates based on the sale will benefit the taxpayers of Novato School District with lower taxes for many years to come. Good work!”

Investor reception was further helped by a credit upgrade from Moody’s Investors Service to “Aa1”, meaning the District is just one notch below the top of the rating scale. The Proceeds from the sale from the Refunding Bonds will pay the principal of the

prior bonds upon redemption thereof and pay all closing costs associated with the refunding and issuance of the Bonds. Closing costs were $156,173.

The Bank of New York Mellon Trust Company, N.A. will act as the Paying Agent with respect to the Refunding Bonds and as Escrow Agent with respect to the Prior Bonds.  Morgan Stanley is the Underwriter and Isom Advisors is the financial advisor.

The district issued General Obligation bonds totaling $107,000,000 as approved by the voters in the 2001 election.  Bond Series 2011 had $11,445,000 remained outstanding prior to the refunding.

For more information, please contact:

Yancy Hawkins

Assistant Superintendent

(415) 897-4260