Cabell County Schools is pleased to announce that, in a special board meeting, the Cabell County Board of Education has approved the sale of $87,500,000 in bonds, the next crucial step toward investing in new and updated school facilities.
The issuance of the bonds was originally approved by Cabell County voters through the school bond election on August 22, 2020. Cabell’s school bond election call is the largest ever approved by West Virginia citizens.
The bonds were offered competitively on December 10, 2020 to investors nationally through Parity, a widely utilized electronic bidding platform. Seven bids were received from the competitive sale on Parity. Robert W. Baird & Co., Inc., Red Bank, NJ was awarded the bonds based on the lowest true interest cost of 1.4425% from all the bids.
Based on a comparison of the true interest cost of 1.4425% and the voter approved maximum bond election interest rate of 5.0%, the reduction of the amount of total debt service to be levied over the 15-year life of the bonds is approximately $23,065,465.83.
“We couldn’t be more pleased with the results of the sale of the district’s bonds,” says Ryan Saxe, Superintendent of Cabell County Schools. “Historically low interest rates, combined with the district’s sound financial position as confirmed by our Standard & Poor’s underlying rating, have merged into what is a fantastic deal for Cabell County taxpayers. We are realizing much more ‘bang for the buck’ than anticipated when our facilities planning process began nearly two years ago. These savings will provide a debt service reduction to taxpayers of more than $23 million over the next 15 years while allowing us to build the beautiful, state-of-the art facilities our students and staff deserve.”
Standard & Poor’s Global Ratings, New York, New York (S&P) assigned Cabell County Schools an underlying rating of “A+” based on the general creditworthiness of the district. In its rating report, Standard & Poor’s highlighted the school district’s good financial management and strong reserve balances, as well as Cabell County’s diverse tax base. The Bonds are the first issuance of public-school bonds in West Virginia in the modern era to be assigned an underlying rating. See the attached S&P Global Ratings report for details.
S&P also assigned the district a program rating of “AA-“ based on Cabell County Schools’ participation in the West Virginia Municipal Bond Commission program. The State of West Virginia’s long-term S&P rating is “AA-“.
“The outstanding outcome of today’s sale will allow us to maximize these soon-available funds so we may address the facilities needs of our students, staff, and communities. In turn, we are making a tremendous impact on the future of Cabell County by creating jobs as well as fueling direct and indirect investments into the local economy. We simply can’t wait to start breaking ground.”
Piper Sandler & Co. served as municipal advisor and Steptoe & Johnson PLLC served as bond counsel for the bonds.
The bonds are scheduled to close on December 29, 2020.