Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
PNC advisor says rates largely unchanged; Pine-Richland monitors window for bond refunding
Summary
Tony Masidi of PNC Capital Markets told the Pine-Richland School District finance committee that interest rates remain near late‑2024 levels and the district could reach refinancing savings if 70–90 basis points materialize on target issues.
Tony Masidi of PNC Capital Markets told the Pine‑Richland School District Finance Joint Governance meeting that municipal interest rates are largely unchanged from late 2024 and staff will continue to monitor market movement for a possible bond refunding.
Masidi told board members that five‑ and 10‑year yields and tax‑exempt MMD curves remain “right on top of where we were at the end of 2024,” and that investors have not yet pushed yields strongly lower. He said the district’s two primary refunding candidates could capture 70–90 basis points of improvement if market conditions evolve, which in turn could let the district reach its 3% net savings threshold for refundings.
The presentation described the supply/demand dynamic Masidi said is keeping yields from moving lower: investors hold cash on the sidelines while issuers delay bringing new supply to market. He recommended watching incoming economic data — notably CPI, PPI and the Federal Reserve’s post‑meeting commentary — for signs investors may reenter at higher volumes.
Board members asked for clarification of timing and savings. Masidi said the district could prepare documents and do much of the work two to three weeks before adopting a refunding resolution; once adopted, the offering would need about one week to 10 days in the market, plus a 20‑day review period under the Local Government Unit Debt Act (DCED review) and customary 30 days between pricing and settlement. He estimated a full process from start to settlement at roughly 60–75 days, barring unexpected delays.
On potential savings, Masidi and the staff team showed an example where 70–90 basis points on the two refunding candidates would produce roughly $71,000 in annualized savings (net of issuance costs) tied to about $9 million of debt service. The presentation noted those savings depend on reaching a roughly 3% net present value threshold the district has used historically as a refunding trigger.
The district agreed to continue monitoring and revisit the market after the Federal Reserve meeting cycle; staff suggested a further update in April or May unless market movement warranted an earlier discussion.
