School Bond Authority Sells $345 Million In Tennessee Higher Education Facilities Bonds

Wednesday, August 27, 2014

The Tennessee State School Bond Authority has just completed the sale of $345 million of higher education facilities bonds to finance the costs of projects for the state’s higher education system. Tennessee’s excellent credit stimulated heavy interest from bond buyers, allowing bonds to be sold at historically low rates, said officials.

The School Bond Authority sold $132 million in 2014 Series A taxable bonds at a true interest cost of 3.59 percent. The bonds included new money and refunding bonds, the proceeds of which will repay a revolving credit facility, finance additional project costs, and refinance certain bonds outstanding.  The refinancing will save the state’s higher educational institutions more than $6 million.

The School Bond Authority also sold $213 million of 2014 Series B tax-exempt refunding bonds. The true interest cost of 2.81 percent will result in an additional $17.8 million savings to the institutions.  Buyer interest in the bonds allowed the School Bond Authority to reprice most of the maturities on the bonds from 5 to 10 basis points lower than the price that was initially offered.

“This may be the most extraordinary sale in the Authority’s history,” said Tennessee Comptroller Justin P. Wilson. “These low interest rates are a testament to the financial management and integrity of Tennessee’s higher education system and institutions. Taxpayers should be proud of this incredibly successful sale and the savings to the state’s institutions.”

The bonds were rated AA+ by Fitch Ratings, Aa1 by Moody’s Investor Service, and AA by Standard & Poor’s. All of the bonds have stable outlooks.


Recognition To Be Held For Cleveland BOE And City Council At Raider Arena On Monday

Cleveland City Schools will honor the Cleveland Board of Education and City Council on Monday at 7:15 p.m. in Raider Arena. The undefeated Raiders host the Alcoa Tornadoes starting at 7:30 pm. The Lady Raiders tip off at 6 p.m. Board members and Councilmen will be recognized between games. Director of Schools Dr. Russell Dyer, Cleveland High School Principal Autumn O’Bryan, ... (click for more)

Arnold Singers Spread Christmas Cheer At Lee

Lee University welcomed carolers from Arnold Elementary School choir on Tuesday as part of the B.E.S.T. Partners program. The elementary students performed Christmas carols in the Deacon Jones Dining Hall during the Lee student, staff and faculty lunch break. Lunch was provided for the elementary students, courtesy of Sodexo Dining Services. The B. E. S. T. program is ... (click for more)

Tennessee Members Of Congress Urge President To Approve Federal Disaster Assistance For Tennessee Counties

Members of Tennessee’s Congressional delegation on Saturday urged President Obama to quickly approve Governor Haslam’s request for a major disaster declaration for the State of Tennessee to help five Tennessee counties impacted by wildfires and severe weather in November rebuild and recover. “Governor Bill Haslam has submitted a request for Public Assistance and Individual ... (click for more)

Grohn Says Integrity And Ethics Lacking In Berke Administration

Mayoral candidate Larry Grohn criticized controversies and instability coming from the mayor’s administration as a sign of unethical leadership and a lack of integrity. He said, "These scandals lay out the simple fact that it is time for new leadership which is accountable to the people." Councilman Grohn’s criticism comes after the independent auditor’s release of a memorandum ... (click for more)

New School Funding Ideas

After reading the article “County Schools Prepare To Set Priorities For Next Round Of School Building Funding,” I could not help but think about how helpful it would be to have the millions of taxpayer dollars given the owners of Walnut Common apartments to build some new schools.   In case you did not know, since 2008 our elected officials have given away millions in taxpayer ... (click for more)

Roy Exum: John Glenn’s ‘Hero’

When John Glenn became the first man to orbit earth, the timing was perfect. I was 13 years old at the time, in need of a hero, and I latched on to the astronaut tighter than a tick. All of us boys knew he’d flown 150 missions in fighters in World War II and Korea and, believe me, he was “The Right Stuff” long before the great movie about the Mercy 7 daredevils came out about 30 ... (click for more)