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Upper Darby SD says 2024 bond sale settled; about $35 million available for Clifton Heights project
Summary
Finance and Operations Committee received an informational update that the district’s 2024 general obligation bond priced and settled this week, producing roughly $35 million in net proceeds to fund construction of Clifton Heights Middle School and future capital work.
The Upper Darby School District Finance and Operations Committee heard an informational update on the district’s 2024 general obligation bond issuance, which priced in mid‑September and settled the same day as the committee meeting. Craig Rogers, staff member for the district, said the bond’s pricing produced a 3.705% yield on the 30‑year issuance and netted the district just over $35,000,000 in cash for construction needs.
The report matters because the proceeds are earmarked to support the Clifton Heights Middle School construction and to provide cash flow for subsequent project phases. Rogers told the committee the district will issue additional bonds in 2025 and 2026 as construction draw schedules require.
Rogers reviewed the issuance timeline for the committee: due diligence began in July 2024; a preliminary official statement was circulated in early August; a Moody’s credit opinion was issued September 3, 2024; the board previously adopted a maximum parameters resolution on Sept. 10, 2024; and the district executed a pricing/rate lock on Sept. 17 before today’s settlement. He said, “The wires transacted. All the funds are now in the district’s accounts, and ready to be dispersed for any kind of construction needs that that are necessary.”
Rogers described the transaction mechanics: the par amount was $32,755,000 and, after premium, discounts and issuance costs, the district received roughly $35,000,000 in cash. The locked yield for the 30‑year general obligation bonds was reported as 3.705%. Rogers also told the committee that the move from the August pricing to the day‑of settlement produced estimated annual interest savings of about $140,000, which he said equates to just over $4,000,000 in savings across the life of the bonds given the timing of market rates.
Committee members asked procedural questions and offered thanks for the finance team’s work; no formal committee action or vote on the issuance occurred at the meeting because the bond pricing and settlement were executed under the board’s previously adopted parameters. Rogers and district staff said future bond sales will be timed to construction draw needs for Clifton Heights and any related capital planning.
The committee received the update as informational and moved to the next agenda item.
