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District Sells First Round of Bonds
December 13, 2017 - On Tuesday, Dec. 12, 2017, Hillsboro School District sold its first round of general obligation bonds for $320 million. Because eighty-five percent of bond proceeds must be spent within three years of receiving the funds and because the bond program spans five years, the bonds are being sold in two rounds: one now and one in 2020.
The results could not have been better. With our strong bond rating and an excellent sales effort by our underwriter, Piper-Jaffrey, demand for the bonds was extremely high, which drove interest rates down and bond premiums up. In the end, we only had to sell $268.4 million in bonds to garner $320 million because the bond premium topped $51.6 million.
The bond premium will help provide a cushion both for unforeseen expenses with bond projects and for the potential of a less favorable market in 2020 when we sell the remainder of our bonds. It will also allow us to complete some of the prioritized projects that did not make it into the bond program.