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.


Annual Health, Wellness And Career Fair At Chattanooga State Is March 4

The Chattanooga State Community Health Institute partners with Continuing Education and Career Services to bring the Ninth Annual Health, Wellness And Career Fair to the community on Friday, March 4 from 9 a.m.-1 p.m. in the Health Science Center on the Main Campus. The fair is free and open to the public with free parking. Non-driving community members may check the CARTA Route ... (click for more)

UTC Students To Be Honored At Stophel Scholarship Reception Thursday

Chambliss, Bahner & Stophel, P.C. will host the Chattanooga business community to honor and recognize 10 UTC students who have shown dedication and excellence in their studies.  The Stophel Scholars program connects students to leaders in Chattanooga’s business community and a reception will be held Thursday from 5:30-7 p.m. at Chambliss Conference Center, Liberty ... (click for more)

WWTA, Grimes, Clem Lambasted At Boyd Public Forum

Over 50 people turned out Tuesday night on a meeting called by County Commissioner Tim Boyd over issues with the Hamilton County Water and Wastewater Treatment Authority (WWTA), and many took turns lambasting the agency, director Cleveland Grimes and attorney Chris Clem. Commissioner Boyd said at the end of the hour and a half session at the East Ridge Community Center, "If less ... (click for more)

City Facing Millions In Catchup Costs For Fire And Police Pension Fund

City Council members were told Tuesday they are facing millions of dollars in catchup costs for the fire and police pension fund. Pension fund officials said the city will need to invest some $1.6 million per year more with the fund to keep up with the latest state requirement. Frank Hamilton said the fund has been at a level of about 60 percent of obligations, but that needs ... (click for more)

Rick Smith Should Not Be Paid To Leave

Taxpayers of Hamilton County should take note that a majority of the members of the school board are getting ready to give Rick Smith the buyout that he wants.  Do you agree that someone should be paid for taking the coward's way out?  Rick Smith should be fired for cause. Not paid to leave.   If you don't want the board members to pay him off, call or ... (click for more)

Roy Exum: Grab The Reaching Hand

Three of Tennessee’s largest four cities are now searching for school superintendents. Jesse Register retired last June and, after botching the first attempt, Nashville city leaders are intensely helping the Board of Education in a search for the best candidate. In Knoxville and Chattanooga the superintendents have resigned, both under a cloud, and now the leaders of the ‘2.0’ initiative ... (click for more)