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Forsyth County Schools to market two refunding bonds; staff project multimillion‑dollar savings

Forsyth County Board of Education - Work Session · November 12, 2025

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Summary

Raymond James presented a pre‑marketing update saying the district could refinance two prepayable issues — a general obligation and a revenue bond — and expects market pricing next Tuesday, a December 18 closing and an estimated net present‑value savings in the roughly $4.7M–$5.3M range.

Forsyth County Schools finance advisers told the board at its Nov. 11 work session that the district plans to market two refunding bond issues next week and expects to present final rates and a bond resolution for board approval at the next regular meeting.

Gabe Agan of Raymond James said the district is looking at refinancing two prepayable issues — a larger general‑obligation bond that currently carries roughly a 5% coupon and a smaller revenue bond issued through the Forsyth County Public Facilities Authority. Agan said preliminary estimates show about $760,000 in annual debt‑service savings and a net present‑value benefit in the neighborhood of $4.7 million; elsewhere in the presentation he and staff also referenced an estimated savings figure “about $5,300,000.” Agan emphasized these are estimates and that “we’ll have final numbers next Tuesday” once the market closes.

“​​This is not taking on any more debt,” Agan told the board. “We’re not extending it — we’re just going to lower your interest rate.” Board Chair summarized the plan to the public as: “The system is not taking on new debt. The system is refinancing 10‑year‑old debt, taking advantage of market conditions and we think it’ll produce a net savings north of $5,000,000 for the taxpayer.”

Staff and the financial adviser said the two issues are prepayable under industry call provisions and that the refunding would not change the maturity schedule. A board member asked whether the savings could be used to pay down principal early; staff replied that the bonds cannot be prepaid ahead of the call provisions and that the transaction is structured to lower interest costs rather than reduce outstanding principal immediately.

Next steps: staff will return to the board with final pricing, a bond resolution and a bond purchase contract for consideration at the next meeting; a closing was planned for Dec. 18 if market conditions hold.

Provenance: presentation and Q&A during the bond update (Gabe Agan; SEG 067–SEG 301).