Board Approves Payoff of Existing Bonds

During the October regular board meeting, Magnolia ISD Board of Trustee members listened to a presentation by the district finance team about possible bond refunding opportunities given current favorable market conditions. District Assistant Superintendent, Dr. Erich Morris, and Financial Advisor, Mr. Lucas Janda, outlined several scenarios with projected savings for Board consideration.

 

The Board directed the finance team to move forward with a combination approach focused on interest savings and reducing the amortization (payoff) of existing bonds. The finance team finalized the transaction on November 12th by refunding two bonds, Series’ 2013 and 2016, which resulted in a savings of $28.5 million and a reduction in amortization by two years.

 

“The Magnolia ISD has one of the lowest debt-to-student ratios among the surrounding peer districts thanks to the Board’s commitment to an aggressive bond defeasance plan and overall conservative decision-making,” stated Dr. Morris.