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Unionville‑Chadds Ford SD authorizes bond parameters, advisers to seek pricing
Summary
The school board approved a maximum‑parameters bond resolution allowing advisers to seek pricing the next day; district advisers reported an Aa1 Moody’s rating, a targeted $14 million net deposit and an anticipated settlement on May 23. Vote: 9‑0.
The Unionville‑Chadds Ford School District board on April 15 approved a maximum‑parameters bond resolution that lets the district’s financial team access the investor market to lock in interest rates as soon as the following day.
John Fry of PFM Financial Advisors told trustees the district secured a Moody’s Aa1 credit rating for the proposed issue, a rating he described as “really an excellent credit rating,” and said the financing team expects to size the bonds to provide a net deposit of about $14,000,000. Fry said pricing would be sought on Wednesday and the district is scheduled for a May 23 settlement.
Bond counsel explained the resolution is a maximum‑parameters authorization required for state filing and noted Section 10 lays out the maximums the Commonwealth of Pennsylvania requires to be stated for each maturity year. Counsel described a maximum underwriter discount and a maximum interest rate of 5.5% and said the resolution states a maximum aggregate amount of $16,000,000 across maturities; the expected actual par and interest rates are expected to be lower than those stated maximums.
The counsel also said the district would file with the Pennsylvania Department of Community and Economic Development; that agency has 20 days to comment on the filing before closing can proceed.
Board member Speaker 5 moved to approve the UCFSD bond resolution and related documents; the motion was seconded and the board approved the item by voice vote, recorded as passing 9‑0.
The board will receive final interest rates and payment amounts after the financing team completes pricing and returns to the district with numbers; the advisers said funds would become available roughly a month after pricing if the schedule holds.
