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Board authorizes pursuit of bond refunding expected to free about $1.6 million in savings
Summary
After a presentation by financial advisors, the Pickerington Local board approved a resolution authorizing a bond refunding of roughly $18.8 million in outstanding series, with advisors estimating about $1.6 million in net savings and next steps to pursue credit rating and structuring.
The Pickerington Local School District board on Monday approved a resolution to pursue bond refunding for bonds issued in 2015 and 2016, a move described by outside advisors as similar to refinancing a mortgage.
Jeremy Wuskirchen of Baker Tilly told the board a refunding would issue new bonds to call currently outstanding series. "A by bond refunding, as John had mentioned, is much like a refinancing of a mortgage," he said, and advised the board that market conditions made the opportunity favorable now. The resolution on the table identifies about $18.8 million in principal eligible to be refunded.
Advisors said the district's credit profile is strong. Wuskirchen noted the district carries a Moody's Aa2 rating, which should help achieve competitive interest rates. Board members asked whether the projected savings accounted for fees; an advisor replied that the $1.6 million savings estimate is net of refinancing fees.
Board members also asked about the paying agent; staff noted Huntington's paying-agent function has transitioned to Argent and suggested advisors evaluate whether the district should change paying agent as part of the refinancing process.
Following the presentation and questions, the board moved, seconded and approved the authorization to proceed with refunding steps including obtaining a credit rating and working with KeyBank and underwriters on structure and timing.
The board authorized advisors to continue work toward a refunding that would, if market conditions hold, be structured for call dates available in December 2025 and could produce savings above the typical 3% GFOA target. Staff said the advisors will return with final structure and pricing for board approval before bonds are sold.
