On Oct. 22, RISD refunded $45.9 million in outstanding bonds, resulting in $2.3 million in present value savings and $9.7 million in total debt service savings over the life of the bonds. Refunding bonds is similar to how a homeowner might refinance a home mortgage to take advantage of changes in interest rates, and the refunding allowed the district to accelerate principal repayment to reduce interest costs. RISD trustees had previously provided district finance staff with flexible refunding parameter orders, allowing the district to appropriately time the market and realize the substantial savings.
Leading up to the refunding, both Moody’s (Aaa, stable) and S&P (AA+, stable) affirmed RISD’s outstanding bond ratings, making the refunded bonds more attractive to buyers at lower interest rates. Both ratings are the highest that Moody’s and S&P award to any Texas school district.
RISD has issued 97% of Bond 2021 bonds, and expects to issue the final amounts in 2025. See more updates about Bond 2021.
