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Committee approves application to State Bond Commission to refund 2016 bonds, aiming to lower debt service
Summary
The committee authorized staff to apply to the State Bond Commission for a refunding of Series 2016 bonds (not to exceed $13,455,000) to capture lower interest rates and reduce debt service; presenters estimated potential savings of about $425,000 after fees.
The Terrebonne Parish School Board finance committee voted to forward a resolution authorizing application to the State Bond Commission to refund outstanding Series 2016 bonds.
Wes Shatto, a public finance attorney working the transaction, described the item as preliminary approval to seek the bond commission’s parameters. Marcus Lambert of DA Davidson explained the mechanics: the bonds became callable after the initial 10‑year period and the current market gives the district an opportunity to refinance at lower rates. He said the request asks the State Bond Commission to approve a not‑to‑exceed principal amount of $13,455,000; preliminary estimates indicated potential net savings around $425,000 (about 6% of debt) after fees.
Board members asked whether refinancing could lock the district into another long call period, about upfront points and fees, and whether the presenters have ongoing monitoring of market opportunities. Presenters said fees are netted from savings for State Bond Commission review and that DA Davidson routinely monitors client debt positions and alerts clients when opportunities exist. The board discussed the possibility of bundling a new‑money issue with a refunding (a revenue and refunding bond) to capture efficiencies; presenters said that is feasible with amended approval to the bond commission.
The committee moved the recommendation forward to the full board for final approval; no votes against were recorded in committee.
