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JPMorgan secures low bid for Cobb County School District's $100 million short-term notes; board to consider award at evening meeting
Summary
District staff reported that seven bids were received for $100 million in short-term construction notes; PFM identified JPMorgan Securities as the low bidder (approx. 2.29% interest) and the district reported a lowest net interest cost of 2.291447% with a total net cost of $1,955,405; official award is scheduled for the Jan. 22 evening meeting with closing targeted Feb. 4, 2026.
The Cobb County School District conducted a competitive sale for $100,000,000 in short-term construction notes on the morning of Jan. 22, and staff told the work session that JPMorgan Securities submitted the winning bid.
Laura Howe, a director with PFM Financial Advisors (the district's financial advisors for the sale), summarized the bidding process and said seven bids were received. "JPMorgan Securities was the winning bidder," Howe said, with a bid that came in "for an interest cost of 2.29%." David Baker, the district's chief financial officer, reconfirmed the exact lowest net interest cost of 2.291447% and said the total net cost to the district would be $1,955,405.
District staff explained the purpose of the short-term notes: to make SPLOST 6 proceeds available early in the calendar year so construction projects can start sooner and potentially avoid higher costs from rising construction prices. The notes must be repaid within the same calendar year; staff said repayment is scheduled for December 2026 and that proceeds may be used only for SPLOST 6 projects under the notes' legal guidelines.
If the board approves the resolution at the district's 7:00 p.m. meeting, staff said the award will be formally accepted and the closing is targeted for Feb. 4, 2026, when the district would receive funds. Staff also noted the district has used short-term construction notes in prior years as a standard operating practice to better align construction timing with funding availability.
Board members asked historical questions about how long the district has pursued this practice; staff estimates placed routine use in recent years (late 2010s), and members praised staff's handling of the recent competitive sale. Formal approval of the award is pending the evening board vote.
