Last week, the Lake Orion Community Schools Board of Education announced the successful sales of its 2022 School Building and Site Bonds as authorized by voters in November of 2018.

The bonds were sold at a true interest rate of 2.32 percent with a repayment term of approximately 18 years (final maturity of 2040).

The bonds sold represent the second series of the three series $160 million bond. According to a release from LCOS, the bonds “will be used for remodeling, equipping, re-equipping, furnishing, refurnishing school buildings, athletic fields, playgrounds and other facilities for safety and security, energy conservation and other purposes; erecting, completing, equipping and furnishing a replacement elementary school, a new early childhood center facility and security entrance additions and other additions to existing school buildings; acquiring and installing instructional technology infrastructure and equipment in school buildings and other facilities; preparing, developing and improving sites at school buildings; playgrounds, athletic fields and other facilities for traffic control, safety and security and other purposes and the purchase of school buses, and paying the costs of issuing the Bonds.”

The district worked with its municipal advisor, PFM Financial Advisors LLC to have their credit evaluated. The district was given an underlying rating of “A+” from S&P Global Ratings, a business unit of Standard and Poor’s Financial Services LLC. S&P Global Ratings cited the district’s stable local economy, strong income and wealth, strong tax base growth, strong fund balances and expected balanced operations in the 2022 fiscal year in their reasoning for the rating.

“Our issuance experienced very strong participation in the order request process,” said John Fitzgerald, LOCS Assistant Superintendent of Business and Finance. “We had an average of seven times the “requests to purchase” bonds as was being offered for sale. Investors such as Vanguard, Black Rock, Nuveen, US Bank Corp., and other major players bought our bonds. This reflects the confidence the investing public has in Lake Orion Community Schools.”

The financing for LOCS was conducted by the Michigan investment banking office of the brokerage firm, Stifel, the municipal advising firm, PFM Financial Advisors LLC, and the law firm serving as bond counsel, Miller, Canfield, Paddock and Stone, P.LC.

“Lake Orion Community Schools bond sale was met with great demand from investors. This will allow the district to improve its facilities for the benefit of the community with less impact on its taxpayers,” said Brodie Killian, Managing Director with Stifel. — M.K.