Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Financial adviser recommends terminating 2021C swap, issuing fixed-rate bonds for Bethlehem Area SD
Summary
PFM presented two refinancing paths for the district's roughly $30 million 2021C variable-rate bonds and recommended terminating the interest-rate swap and refunding with a fixed-rate bond issue; the board will consider a resolution later this month and the authority meets Aug. 20.
Scott Shears, a consultant with PFM, told the Bethlehem Area School District board on Aug. 11 that the advisory team recommends terminating the interest-rate swap tied to the district's 2021C variable-rate bonds and refunding those bonds with a fixed-rate issue.
Shears said the swap termination and refund would convert about $30 million of the district's roughly $204 million total debt portfolio into traditional fixed-rate debt. He described two options: (1) issue a fixed-rate bond and terminate the swap, or (2) replace the existing variable-rate bonds with new variable-rate notes and keep the swap in place. "The present value cost . . . is about a $886,000 cost," Shears said, adding that the roughly $886,000 present-value…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
