Bristol‑Warren committee selects JPMorgan, Ramirez to underwrite $85 million note offering

The Bristol‑Warren Regional School Committee on Feb. 24 authorized JPMorgan as senior manager and Ramirez as co‑manager to underwrite a public offering of short‑term notes intended to roll current bank paper and carry school construction through the next 12 months.

The committee’s municipal advisor, Steve Mastroni of PFM’s Boston office, told members the district expects to roll roughly $85,000,000 of borrowing when current short‑term notes mature in April. Mastroni said the district solicited proposals from nine firms and evaluated them on fee, indicative spread to an index, experience selling notes, and proposal quality. He recommended JPMorgan as senior manager and Ramirez as co‑manager because of scale, local Rhode Island experience, and note‑sale capability.

PFM’s presentation said Cabrera Capital submitted the lowest indicated spread (about 17 basis points) but had higher fees and little note experience in Rhode Island. Four firms fell into a more typical market range, with spreads Mastroni described as roughly 30–40 basis points. The recommended structure calls for a public offering with an official statement prepared by the underwriters and the district, rather than another direct bank purchase.

Superintendent and finance staff told the committee the district previously issued $6.3 million in short‑term notes purchased directly by a bank; those notes come due in April and the new offering would extend financing for the project’s next phase. Committee members asked whether adding a co‑manager raises costs; PFM explained the senior and co‑manager split the economics of the deal and that having a syndicate can lower overall interest by broadening investor reach.

The committee took the motion to appoint the firms (motion and second on the record) and the chair called for a voice vote; the online record shows the motion carried. The appointment authorizes the underwriters to prepare a preliminary official statement and take the notes to market on the district’s behalf; it is not final approval of the note issuance or the ultimate interest rate.

Why it matters: A public offering and a larger underwriting syndicate are intended to secure a competitive market rate for a sizable, $85 million financing and to position the district to obtain a Rhode Island Health and Education takeout later in the transaction process.

What happens next: PFM and the underwriters will prepare the official preliminary statement, solicit bids in the public market, and return to the committee with final pricing and the formal note issuance documents for consideration.