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Downingtown advisers recommend $30 million bond refinancing to address deferred maintenance
Summary
School district advisers told the board that falling municipal rates make reallocating debt and issuing $30 million in new bonds attractive to pay for deferred HVAC, roofs and other capital work while stabilizing annual debt service.
Downingtown Area School District officials and their financial advisers recommended pursuing a refunding that would refinance three existing bond issues and issue $30 million in new money to address deferred maintenance and restore capital reserves.
At an informational Committee of the Whole meeting, Raymond James underwriting partner Lou Verdeli said municipal borrowing rates have moved lower in recent months and that the district’s strong credit profile would likely yield interest rates in the low-to-mid 3% range. John Fry of PFM reviewed the district’s outstanding debt and call schedule, noting about $8 million in annual debt service and roughly $47 million principal outstanding on active issues.
The advisers presented several scenarios: refund existing eligible issues and borrow either $20…
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