Waverly Community Schools Announces

Successful Sale of $36,535,000 2005 Refunding Bonds

The Board of Education of the Waverly Community Schools is proud to announce the successful sale of its $36,535,000 2005 Refunding Bonds. The Bonds are being issued for the purpose of refunding the School District's outstanding 2000 School Building and Site Bonds and to pay the costs of issuing the Bonds. This refinancing reduces the School District's interest expense approximately $1,924,300 for the taxpayers and will occur through lower debt payments over the next 17 years.

In preparing to sell the 2005 Bonds, the School District requested that Moody's Investors Service ("Moody's") and Standard & Poor's Rating Services ("S&P") evaluate the School District's credit quality. The School District was assigned high Moody's and S&P ratings of "A1" and "A+". The rating agencies cited strong financial management and budget controls, steadily increasing enrollment and a growing tax base in their rationale for rating the School District at these levels.

The School District's financing was conducted by the Michigan investment banking office of the brokerage firm, A.G. Edwards & Sons, Inc., the financial advising firm, Erickson, Umbaugh & Associates, LLC and the law firm serving as bond counsel, Thrun Law Firm, P.C. The School District's 2005 Refunding Bonds were sold at a true interest rate of 4.125% with a final maturity of 2021. Given today's lower interest rate environment and the School District?s strong credit quality, the interest expense on the 2005 Bonds was significantly reduced from original projections.

Brenda L. Palmer, Vice President of A.G. Edwards states, "Waverly Community Schools Bonds had great investor demand and were well timed in the municipal market to take advantage of current low interest rates."