Orange, CA (June 10, 2018) – Last Thursday, the Orange Unified School District issued the sale of General Obligation Bonds, Election of 2016, Series 2018 (GO Bonds) that will deliver $188,000,000 to the District’s four comprehensive high schools for much-needed modernization and construction projects. The GO Bond sale is the first of two expected sales of bonds under Measure S, which was approved by voters in November of 2016.
Prior to the pricing of the GO Bonds, District staff sought credit ratings from both Fitch and Standard & Poor’s (S&P) Global Ratings. Both credit rating agencies are nationally recognized and well respected in the investment community. Fitch assigned its highest rating of “AAA” and S&P assigned “AA”, which is one of the highest possible ratings.
The GO Bonds were sold through a competitive process. Bids were due at 9:00 a.m. on June 7. Seven firms bid, resulting in a winning bid by RBC Capital Markets. Compared to estimates provided to Board of Education on May 24, the actual total payments owed by District taxpayers as a result of the sale is more than $4.7 million lower than originally projected.
“We are so pleased that we can deliver on our promise to the students, families and taxpayers by improving our school facilities in the most cost-effective way possible,” said OUSD Board President Alexia Deligianni-Brydges, Ed.D. “I am as proud of our board and staff’s fiscally conservative prudence as I am the four state-of-the-art science buildings we’ll be constructing at our four high schools.”
Under Proposition 39 law, all Measure S funds are locally controlled, not used for administrators’ salaries, and are under supervision from an independent Citizen Oversight Committee.