Shawnee Mission district to save $11M on refinanced bonds

Almost with the stroke of a pen, Shawnee Mission School District will save more than $11 million by refinancing bonds from 2004 and 2005.

The winning bid for the resale of the bonds came in at 1.78 percent. Representatives from the George K. Baum company, had predicted a rate of more than two percent when they talked to the board a few weeks ago about the re-financing. The district’s savings are more pronounced than had been expected.

The existing bonds had an average interest rate of 4.74 percent. The new issue is scheduled to be retired in 2025. The bond principal is $79,790,000 and the cumulative annual savings realized is $11,843,051.

William Blair and Company was the low bidder for the bond re-financing.