BHUSD Sells 2013 Bonds Successfully

Beverly Hills Unified School District series 2013 bonds were sold very successfully on Wednesday, Nov. 20, according to district officials.

Keygent, the financial advisory and management consulting firm for BHUSD, reports the bond sale of $45 million received a very aggressive interest rate pricing from the bidders, with the top two bids only 0.0015 percent apart.

Prior to the sale, the assumption was to sell with a 6 percent interest rate for this particular financing. With the results of the successful bond sale, BHUSD achieved an interest rate of 5.01 percent, nearly one whole percentage point lower, decreasing the cost of repayment on the bonds by approximately $35 million.

“This positive bond sale demonstrates confidence that the Beverly Hills Unified School District is considered a healthy risk to investors over other districts, and that by our conservative projections, as exhibited by the difference in the interest rate assumption and the actual result, we can give the community comfort with the district’s assumptions moving forward," said Supt. Dr. Gary Woods in a released statement.

District officials note the series of bonds complies structurally with the parameters of Assembly Bill 182, even though the district is not required to do the following until next year:

• Repayment ratio is less than 4 to 1
• There are no capital appreciation bonds longer than 25 years
• The bonds are subject to optional prepayment in 10 years or less