District bonds earn AAA rating,
West Orange – Cove’s Unlimited Tax School Building Bonds, Series 2008 have been rated Aaa by Moody’s Investors Service pursuant to the Permanent School Fund Guarantee Program.
The notification came in January prior to the District’s initial sale of $38 million in school bonds.
“Approval by the Texas Education Agency for our participation in the Permanent School Fund Guarantee Program is a direct result of the remarkable strides of the WO-C Trustees in establishing the superior financial health and management of the District,” said Superintendent Taylor Collins.
The sale of the bonds was approved by the WO-C Board of Trustees on Jan. 30.
Lewis Wilks, Financial Advisor from Coastal Securities, said, “The PSF Bond Guarantee Program enhances all the Bonds to the Aaa rating category resulting in a lower interest rate for the District.”
“When we started the process of the bond election back in late August, we were using 5.5 and 5.25 percent interest in our numbers. So we are a good bit better than we thought we would be in today’s market,” Wilks said.
The bonds have a borrowing rate or true interest rate of 4.584 percent on a 30 year debt.
“I am pleased that taxpayers will receive significant advantage as a result of the highest rating of Triple-A for these bonds,” Collins said.
Proceeds from the sale of the bonds will be used to construct a new elementary school, additions to both West Orange – Stark Middle and High Schools, as well as fund other prioritized projects.
"The students of West Orange-Cove CISD deserve the best facilities we are able to provide, and we are elated that the time has come for the planned additions and improvements to become a reality. I applaud the electorate of our school district for making this possible. The lower interest rate provided by the Aaa rating on the bonds is an added bonus to tax payers," Dr. Mary Fontenot Hardin, WO-C School Trustee said.
The District anticipates the sale of the remaining $9 million in bonds to occur in 2009.
Voters approved the $47.9 million bond project in November 2007.