Current CMSD Bond Credit Rating
17 April, 2015 – Rating agencies affirmed all underlying ratings at:
Note: Program ratings are higher than the district’s underlying rating due to the enhancement from the Ohio School District Credit Enhancement Program.
Most Recent Bond Transaction (1 June, 2015)
CMSD successfully sold $200 million of voter approved bonds on June 11, 2015. The 2015 Bonds were comprised of $150,200,000 of tax-exempt Bonds, which is the typical structure for Ohio school district debt. The tax-exempt bonds were structured over 35 years. Additionally, CMSD took advantage of the federal Qualified School Construction Bond program for the remaining $49,200,000, for which the interest expense is largely subsidized. The QSCB’s were structured at the maximum allowable maturity of 26 years.
The 2015 Bonds came to the markets with enhancement from the Ohio School District Credit Enhancement Program, which resulted in credit ratings of Aa2 / AA / AA from Moody’s, Standard & Poor’s, and Fitch, respectively. The District’s unenhanced credit ratings were A2 / A- / A- for the 2015 Bonds.
Investors received the 2015 Bonds very well. The strong reception for the Bonds resulted in an average true-interest-cost of 2.88% for the combined issue.
The Bonds ended up being purchased by 49 different investors. The investor list included firms such as: Northern Trust, Eaton Vance, Citigroup, PNC, Performance Trust, Mackay Shields Financial Corp, Fidelity, Teachers Insurance, USAA Investment Management, Genworth Life Insurance. (For a more complete list see attachment
The costs of issuing the 2015 Bonds were an exceptionally low .41% of par value. The impact of the cost of issuance resulted in an “All-In” interest rate of 2.897%.
The District has the option to pre-pay, or refund, a majority ($115,575,000) of the 2015 Bonds. If interest rates should drop in the future, then the interest cost could be further reduced.
Funds will be received on June 30, 2015.