High Level of Confidence in the District
On Jan. 12, 2017, Academy School District 20 issued the first set of bonds for the $230 million bond program approved by voters in November 2016. The market opened with a downward trend in rates and the demand for the district’s bonds was extremely high.
At one point during initial pricing, there was almost $694 million in orders for the district’s $160 million issuances. With such heavy demand and competition for the bonds, underwriters were able to re-price all maturities to lower interest rates to find an appropriate supply/demand balance.
The district priced and issued $160 million in bonds and generated $183 million in proceeds with an average interest rate of 3.3 percent. The additional $23 million is a result of buyers paying premium prices.
The bonds closed on January 24, 2017.