HALEYVILLE - A historically low interest rate - combined with a new option of flexibility for school systems in handling their own bond issues - have resulted in Haleyville City Schools handling the refinancing of the bond issue for the middle school, which will free up finances for both the school system and the City of Haleyville.
In 2007, the City of Haleyville financed the original $12 million bond issue for the middle school, which was refinanced by the city in 2014.
This marks the first time that the school system has refinanced the bond issue which, according to Reid Cavnar, investment banker with Stifel in Montgomery, which handles bond issues for school boards, the time is historically great for the school system to assume the bond debt from the city.
“Interest rates have dropped,” Cavnar stated. “We are at historical lows in the municipal bond market. They (the board) is taking advantage of those low rates and refinancing debt.”
Stifel, Cavnar explained to Superintendent Dr. Holly Sutherland and board of education members during a work session Tuesday, Sept. 24, is the underwriter for the board of education’s bond issue, which will refinance some existing indebtedness regarding the middle school.
By the school system refinancing the bond indebtness instead of the city--as has been done since the 30-year bond was issued in 2007--the school can not only take advantage of the historically low interest rate, but also keep the terms of the indebtedness the same.
See complete story in the Northwest Alabamian.