NOVATO / KENTFIELD, CA—The Marin Community College District (MCCD) recently locked in savings for local taxpayers by refinancing existing General Obligation Refunding Bonds (bonds). The District has taken advantage of previous refinancing opportunities since 2012, saving taxpayers over $34.3 million. The combined savings from refinancing now totals over $46 million, which will be realized by taxpayers in the form of lower property tax bills.
The District replaced existing bonds with an average interest rate of 4.09% with new bonds at an all-inclusive interest rate of 2.34%. This rate reduction of 1.75% was achieved without any extension of the original repayment terms.
Prior to the bond sale, Moody’s Investors Service affirmed the District’s perfect ‘Aaa’ credit rating. In its credit report, Moody’s noted the District’s “experienced, fiscally prudent management team which has maintained a stable financial position.”
This perfect credit rating helped attract a broad investor base including government agencies, insurance companies, money managers, banks, and bond funds. While the District had approximately $203 million in bonds to sell, it received significant investor interest with $1.14 billion in orders (5.6x subscription).
“We were thrilled to receive over a billion dollars in investor orders,” said Superintendent/President David Wain Coon. “Marin County taxpayers are the beneficiaries here, and we’re fortunate that our Board of Trustees took quick action when they recognized another opportunity to pass back savings.”
Past Bond Refinance News Releases
- February 17, 2021: Marin Taxpayers Save Over $12 million in Bond Refinance
- November 21, 2017: Perfect Credit Rating, Bond Refinancing, Saves Taxpayers $6.35 million
- February 22, 2016: Bond Refinancing Will Save Marin Taxpayers Over $14 Million
- June 30, 2015: Bond Refinancing Will Save Marin Tax Payers Over $8.7 Million
- November 30, 2012: Marin Taxpayers to Save $6.3 Million on Bond Refinance