Bond interest rates low as Athens ISD prepares to sell

By Toni Garrard Clay/AISD Communications Specialist

Athens ISD trustees received welcome news at the board meeting Thursday, Dec. 17, regarding the planned sale of $59.9 million worth of bonds this January.

“Long-term interest rates remain extremely low [and] we expect interest rates will remain low for you,” said Robert White of SAMCO Capital Markets, a Dallas-based firm facilitating the sale of the bonds for the district. “We’re looking good.”

The bonds sold will be AAA rated and guaranteed by the Permanent School Fund. The amortization period will be 25 years, with an option of refinancing in 10, if market conditions are favorable for doing so. The projected school tax rate increase, as publicized by the district prior to the November election, is 24 cents per $100 valuation. AISD enjoys an “A+” credit rating by Standard & Poor’s Rating Services.

The bonds are scheduled to be priced on January 21 in a competitive bond sale. The trustees will have the opportunity to adopt an order authorizing the issuance of the bonds that evening at the regularly scheduled board meeting. With the board’s authorization, the bond sale will close Feb. 18, at which time $59.9 million will be transferred to the school district’s construction account.

The builder for the projected two-year project is Gallagher Construction Services, a Dallas firm established in 1968. Gallagher’s client base consists of independent school districts, municipalities, higher education districts and other government agencies. Architects for the job are Claycomb Associates, a school design architecture firm also based out of Dallas.

One thought on “Bond interest rates low as Athens ISD prepares to sell”

  1. I am pretty sure the FED just raised interest rates by 1/4 % not sure what affect that will have on $60,000,000 , but to my thinking it is signifcant and we are told that this will be common in the future . I wish the folks that voted this Bond in would take a little ride down to the Cross Roads school and look at the construction site as it stands today and if they are capable imagine what the A.I.S.D. campus will look like during the course of it’s construction project for 2 years and then tell me they are worried about kids getting wet on a breezeway going from class to class . As one might guess I was against this election and Still am . The proponents won the day and they did work hard to do so , however in my thinkng it was based strictly on emotion and Not one bit of Common Sense .

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