PM School Board locks in debt saving of nearly $22 million in bond refinancing move
Pocono Mountain School District was able to lock in a final net debt savings, after all costs of issuance, of $21,768,000 in its latest bond refinancing move.
In September the School Board approved a general obligation bond debt refinancing plan that had the potential of saving the District as much as $22 million in debt service payments over the life of the bonds. That potential savings became a reality when the new bonds were issued on Tuesday, November 1, 2016, just prior to a meeting of the Federal Reserve and the general election next week that could create uncertainty in the bond market.
This bond refinancing action also reduced the term of the debt repayment by three years.
The financial outlook for Pocono Mountain School District continues to strengthen. In March 2016, Moody’s upgraded the district’s underlying ratings from Baa2 to A1 for general obligation unlimited tax bonds, and from Baa3 to A2 for general obligation limited tax bonds. In August Moody’s also determined that Pocono Mountain SD has a stable financial outlook.