Favorable bond market conditions have made it possible for the Cherokee County School Board to sell about $30 million in bonds to pay for $40 million in capital projects.
“Because bonds are in such high demand, buyers were willing to pay more than the asking price, creating a bond premium,” school district spokeswoman Barbara Jacoby said in an email. “In this case, we were able to raise $40 million for voter-approved capital outlay projects by only selling $30 million in bonds – essentially a $10 million borrowing cost avoidance.”
Last month, the board authorized Citigroup Global Markets Inc. to prepare, price and tentatively market up to $40 million in Ed SPLOST general obligation bonds. They are the latest portion of an Ed SPLOST bond issue approved by voters in November, 2016.
The amount actually sold was $30.55 million. The funds will be used over the next 18 to 24 months for improvements including the Creekview High School Agri-Science Lab; Woodstock Middle School instructional addition; Woodstock High School auxiliary gym; and completion of the Mill Creek Middle School instructional addition.
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