The Board of Education of Midland Public Schools is proud to announce the successful sale of its 2019 School Building and Site Bonds, Series II in the amount of $34,930,000 as authorized by the voters of the School District on February 24, 2015. The 2019 School Building and Site Bonds, Series II, representing the second series of bonds under the 2015 voter authorization, will be used for the purpose of defraying the cost of installing security measures for, remodeling, furnishing and refurnishing and equipping and re-equipping school buildings; erecting, furnishing and equipping additions to school buildings; acquiring and installing instructional technology and instructional technology equipment for school buildings; purchasing school buses; developing and improving playgrounds, play fields, athletic fields and facilities, parking and driveway areas and sites and paying the costs of issuing the Bonds.
In preparing to sell the 2019 School Building and Site Bonds, Series II, the School District, working with their municipal advisor, PFM Financial Advisors LLC, requested that S&P Global Ratings, acting through Standard and Poor's Financial Services LLC ("S&P") evaluate the School District's credit quality. S&P assigned the School District the underlying rating of "A+" with a stable outlook. The rating agency cited the School District's good income and very strong market value per capita, supported by a stable local economy with a strong industrial and manufacturing presence; very strong available reserves and low-to-moderate debt in their rationale for rating of the School District at this level.
Midland Public Schools thanks our voters for approving the 2.95 mills Bond in February 2015. Series I funds have been working hard since the spring of 2015 to improve and update security, buildings, technology, transportation, infrastructure and much more. We look forward to getting started on the projects using Series II bonds, which will tackle the scope of work earmarked for MPS elementary and secondary buildings, stadium, technology, infrastructure and transportation.
The School District's financing was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the financial advising firm, PFM Financial Advisors LLC and the law firm serving as bond counsel, Thrun Law Firm, P.C. The School District's 2019 School Building and Site Bonds, Series II, were sold at a true interest rate of 3.19% with a final maturity of 2039 (a repayment term of approximately 20 years).
Brodie Killian, Managing Director with Stifel states, "Midland Public Schools’ Bonds were sold at an opportune time in the bond market. The District was able to enter the bond market after a recent decline in interest rates. The financing met the goals of the District and resulted in a cost of borrowing that was considerably lower than originally anticipated."