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Schools

School District Completes Sale of $18.7 Million in Bond Notes

The notes have enabled modernization projects at Los Alamitos schools.

The Los Alamitos Unified School District recently completed the sale of $18.7 million in Bond Anticipation Notes (BAN). Pre-marketing the notes allowed LAUSD to lower the interest rate in the second sales period for a total interest rate of 2.80%.

Utilizing the sale of BANs, enables the district to access school facility modernization funds now while interest rates are low rather than waiting until in 2016. These funds were authorized by voters with the 2008 passage of Measure K. The BANs will be repaid with the
scheduled sale of bonds in 2016. The estimated five-year tax base increase is expected to allow the District to issue the repayment bond without impacting the tax rate approved by voters in Measure K.

Los Alamitos USD’s national reputation and favorable credit rating led to the successful sale. Other Factors considered in the favorable ratings included the district's reputation and financial strength, a stable local economy and sustained property values.

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“We are pleased that the Los Alamitos Unified School District remains so well respected among investors,” Patricia Meyer, LAUSD Deputy Superintendent, said in a written release. “This is an exciting time for the District. I want to commend our students and teachers for their patience while their campuses are under construction. I know they are excited to move into their 21st century classrooms when construction is complete.”

Currently, modernization projects are underway at McAuliffe Middle School, Los Alamitos Elementary School, Hopkinson Elementary School, and Rossmoor Elementary School. Modernization will begin soon at Lee Elementary School and the gymnasium at Los Alamitos High School, and has been completed at McGaugh Elementary School.

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“Despite a turbulent bond market, this week’s BAN issuance is proof Los Alamitos Unified continues to be an attractive investment,”  said Lynn Paquin, Executive Vice President of George K. Baum & Company, a privately-owned investment bank which handled the transaction for the District.

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