Board approves $15.785 million refunding bond after strong market response
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Summary
The Franklin Board of Education approved a resolution to issue $15,785,000 in general obligation refunding bonds (Series 2026A) after a competitive sale with 14 bidders and a reported true interest cost of 2.63%; Moody’s assigned an AA1 rating, district officials said.
The Franklin Board of Education voted Feb. 4 to authorize the issuance and sale of general obligation refunding bonds, Series 2026A, in the amount of $15,785,000 following a successful sale earlier in the day.
District finance staff said the sale attracted 14 bidders, and Moody’s rated the bonds AA1. Aaron Bushberger, introduced as the municipal advisor to present the results, said the low bidder was Loop Capital Markets of New York and that the market timing produced higher-than-anticipated net present value savings and a true interest cost of 2.63%. Finance staff told the board the originally published par amount of $15,930,000 moved to $15,785,000 based on the sale-day results.
Dr. Beers moved approval of the resolution; Mrs. Sippersky seconded the motion. The board approved the resolution by voice vote.
Board discussion noted the unusually high number of bidders and the favorable interest environment; staff said the district will receive aggregate bid tabulation and the Moody’s rating report in the board packet. No roll-call tally was recorded in the transcript beyond the motion and the chair’s call for aye/oppose; the motion carried by voice vote.
Next steps: administration indicated standard post-sale closing steps and continued reporting of bond proceeds and savings. The board did not amend or add conditions to the resolution at the meeting.