GISD has completed the remarketing of $29,370,000 of variable rate debt for a 3-year term. The interest rate was set at 1.34% through August 1, 2020 and the District locked-in an interest cost savings of $2,877,300 over the next 3-years in comparison to a fixed rate bond alternative. In total, by utilizing variable rate bonds within its debt portfolio, GISD has achieved a savings of approximately $3.64 million and the average interest rate has been 1.16% since the Series 2016-B Bonds were issued in February 2016.
In addition, as part of the remarketing the District prepaid $10 million of the Series 2016-B Bonds prior to scheduled maturity using debt service surplus funds. By prepaying, the District further reduced interest cost by an estimated $9,337,500. Collectively, this provided a direct savings for taxpayers totaling $12,214,800.