FOR IMMEDIATE RELEASE
November 3, 2020
For more information:
Yancy Hawkins
Assistant Superintendent
(415) 897-4260
Novato Unified School District Issues $101 Million in Bonds in Historically Low Interest Rate Environment, Saving Approximately $30 million for Taxpayers
Novato, CA…The Novato Unified School District (NUSD) has completed the issuance and sale of the third series of general obligation bonds from its 2016 Bond Authorization. Due to low interest rates being at historical lows, NUSD took advantage of these rates and sold $101 million in bonds. The term of the newly issued Bonds is just less than 25 years. The interest rate, or true interest cost, of the issuance was 2.2249%.
By changing the timing and size of the issuance, NUSD has saved approximately $30 million of interest cost for Novato taxpayers.
NUSD Board President, Debbie Butler, commented, “I’m proud of our NUSD team in realizing these extraordinary savings and seizing upon the opportunity to save millions of dollars for our taxpayers.”
Investor reception was further helped by a recently affirmed very strong credit rating from Moody’s Investors Service of “Aa1”, which has been held by NUSD since 2017. The proceeds from the sale of the bonds will fund Measure G projects.
The Bank of New York Mellon Trust Company, N.A. will act as the Paying Agent with respect to the Bonds. Mesirow Financial, Inc. was the Purchaser and Isom Advisors is the financial advisor.
The District approved the issuance of General Obligation bonds totaling $222,000,000 as approved by the voters in the 2016 election.
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