North Ridgeville School District finalizes bond transition

NORTH RIDGEVILLE, OH – During the regular Board of Education meeting on Tuesday, June 18, 2024, it was announced that a transaction has been finalized between the district and several investors for a total of $121,845,000. This equates to approximately 80 percent of the total approved bond issue in November of 2023. The remaining 22 million dollars will be issued in the first quarter of 2025.

Preceding this significant transaction, the district issued 15 million dollars in eligible short-term bond anticipation notes, which come due in September 2024. This method was utilized to kickstart funding of the high school construction project, while also incorporating an investment opportunity. This will ultimately allow the district to generate additional funds to put toward the project.

The first step in this process was to confirm the current credit rating of the district. The district worked with a dedicated bond counsel to create a presentation for Moody’s Investor Services. This presentation covered several key areas to give Moody’s a clear and thorough understanding of the district’s financial health, operations, and strategic outlook, including the Treasurer’s Five Year Forecast.

As a result, the district will maintain it’s credit rating of Aa2, which will result in significantly lower borrowing costs for the district. On June 4, 2024 the bonds were priced and offered to the market. The demand for Ohio bonds was high and the school district quickly received interest, according to officials.

Due to the high credit rating and the demand, the resulting true interest rate was 4.78 percent for 37 years. The standard length of time before the option to refinance is ten years. The school district team was able to negotiate and received a term of five years. This presents a great opportunity for the district to refinance earlier and save additional money in interest,” school officials said.

Treasurer/CFO Michael Pissini said, “This process has been lengthy, but the results are excellent news for our community and school district. We have introduced various options to optimize our funds, ensuring a very bright future ahead.”