Hinsdale D86 Refinances Bond, Saves $1M

Submitted by Hinsdale Township High School District 86.

Hinsdale, IL — Hinsdale Township High School District 86 announced that it is “refunding” $14.7 million in 2012 bonds by refinancing them to a lower rate, thereby saving taxpayers $1,006,275 in interest costs over the life of the bonds.

The refinance is known as a “footprint” refinance because the life of the bonds was not extended in order to generate the savings. The proceeds of the 2012 bonds were used to pay for several projects at both schools including:

• Remodeling of four old science classrooms at Central into STEM classrooms as well as asbestos abatement in those rooms
• Increased student and staff safety by remodeling the front entrances at both schools to make the areas more secure and adding a greeter’s desk to control visitor check-in facilitate visitor identification checks
• Reconfigured parking and site traffic circulation at both schools to improve student and staff safety
• Provided air conditioning to remaining classrooms that did not have it
• Added rain gardens at both schools to control storm water flooding into surrounding neighborhoods, reduce costs related to landscaping and to create attractive, environmentally friendly drainage

At the June 20 Regular Action Meeting, the Board of Education authorized District 86 Chief Financial Officer Bill Eagan and District 86 Finance Committee Chair Bill Carpenter to use favorable market conditions to refinance $14.7 million 2012 bonds. A solicitation for bids was issued and the bids were opened on June 29.

With authority given from the Board, CFO Eagan and Finance Chair Carpenter consulted with the public finance arm of investment bank Piper Jaffray and determined that market conditions were favorable to lock in a rate to secure more than $1 million in savings for District 86 taxpayers.

The selected refinancing option maintains the District's ability to call the bonds in 2026. The refunding will close on July 20.