Bond Refinancing saves Millions for Francis Howell and its Taxpayers

Posted on 11/25/2019
Bond Refinancing saves Millions for FHSD and its Taxpayers


In November, lower interest rates in the bond market provided an opportunity for FHSD to save on interest costs for a portion of its outstanding debt. The District offered for sale over $32 million of general obligation refunding bonds and received over $74 million worth of orders. That high demand for Francis Howell bonds, coupled with favorable market conditions, allowed the District to lower interest rates even further than initial estimates, and secure total cash flow savings of nearly $3.2 million.   

Much like homeowners do when refinancing their mortgage, FHSD took advantage of lower interest rates, and the result is substantial savings. In the last three years, Stifel has worked with the District to successfully refund bonds for cash flow savings of more than $5.3 million. These savings are, by state statute, dedicated to the Debt Service Fund and cannot be used for general operating purposes.

“This is a good demonstration of the sound fiscal management practiced by the District,” said Chief Operating Officer Kevin Supple. “This is a direct savings to our community in the form of lower interest costs, allowing the District to keep its debt service levy as low as possible. We always strive to be good stewards of our tax dollars.”

FHSD received an enhance rating of “AA+” from Standard and Poor’s (“S&P”) based on the enrollment in the Missouri Direct Deposit Program. The District affirmed its underlying rating of “AA” from S&P, which puts FHSD in the top 10% of all 181 school districts with an underlying rating by S&P.

Website by SchoolMessenger Presence. © 2019 Intrado Corporation. All rights reserved.