School Board Votes to Issue Bonds to Complete Financing for High School Project
August 20, 2013
At the August 19, 2013 School Board meeting, the Board voted to authorize the issuance of General Obligation Bonds, Series of 2013 in the aggregate principal amount of $34,745,000 to provide funds for the completion of the renovations to the high school.
The bidding was favorable with the District being the only competitive bond sale scheduled in Pennsylvania this week, and the second largest and second highest rated sale of only 11 competitive sales across the country on Monday, August 19, 2013. There were a number of bids, and the bids were very close. The winning bidder was Mesirow Financial of New York City. Mesirow is generally not an active bidder on Pennsylvania school district bonds, but said they were enticed to bid due to the strong Aa1 credit of the District and the belief that their investor base would be excited to own these bonds. With this sale, the District will continue to finance the construction of the high school until its completion in 2015.
On August 12, the Board gave direction to the financial advisor and bond counsel to proceed to bid on an anticipated $33 million debt issue to fund the remaining costs of the high school renovation project. The bonds were directed to be wrapped around existing debt so the millage cost to the community will be minimized with the debt payments implemented over a three year period. It is anticipated that the increase in millage will be below .2 mills each of the next three years to complete this financing.
August 19, 2013
Bond Presentation Handout I
Bond Presentation Handout II
August 12, 2013 Financial Advisor Report