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District finance team outlines plan to refinance 2016 and 2019 bonds, proposes up to $8 million for middle‑school design
Summary
Consultants told the Unionville‑Chadds Ford School Board the district can refinance its 2016 and 2019 bonds this fall and potentially add $8 million of new‑money bonds to pay for middle‑school design and early phases; staff recommended preparing legal documents and a June 15 vote to authorize the issue, with pricing expected in early August and settlement after Sept. 1.
The school district’s financial advisers told the board on May 11 that market conditions and bond call dates create an opportunity to refinance two outstanding issues and to add new money to pay for middle‑school work.
John Fry of PFM and Ed Murray (Steel) said the district’s 2016 bonds (about $40 million outstanding) and 2019 bonds (about $5 million) are eligible to be called, and that closing can occur only after the IRS’s 90‑day pre‑call window opens on Sept. 1. Fry said the district could achieve roughly $800,000–$820,000 in life‑of‑issue savings on the refunding and recommended combining the refinancing with a new‑money series sized to net about $8 million at settlement to continue design and early phases of the middle‑school project. “It’s a great time to refinance,” Fry said, adding that the district would pursue a two‑series structure (2026A/2026B) and would seek a credit rating from Moody’s before marketing the bonds.
Why it matters: refinancing can lower long‑term interest costs without extending the maturity schedule, but it is governed by timing rules and by market volatility. The consultants said the board should approve the legal and financing documents in June so the district can go to market in early August and settle in September if conditions are favorable.
What happens next: the administration asked for the board’s support to begin assembling legal documents and to submit financial materials to Moody’s. The advisers said the board would take the formal vote on the resolution and legal documents at the June 15 meeting; pricing would occur closer to early August and settlement would follow after the Sept. 1 timing restriction.
Quotes and attribution: Mr. Dy introduced the item and framed the timing; Fry told the board, “it’s a great time to refinance,” explaining the mechanics of a refunding and the rationale for adding new money for capital work. Board members pressed for timing and structural clarity during the Q&A; advisers emphasized there would be no extension of existing maturity dates, only lower rates.
Limitations and next steps: advisers stressed that the savings estimate is preliminary until day‑of‑pricing and that market volatility can change outcomes. The district will seek a Moody’s rating and return to the board in June with final documents for a vote.
