Public Finance - Tredyffrin/Easttown School District


Client: Tredyffrin/Easttown School District
Transaction Type: General Obligation Bonds
Role: Sole Underwriter

  • Tredyffrin/Easttown School District (the “District”) encompasses Tredyffrin and Easttown Townships in Pennsylvania. This area is primarily made up of single-family homes, apartments, commercial real estate, as well as some major employers located in such notable communities as Paoli, Devon, Berwyn, Daylesford, Chesterbrook, Strafford, and Wayne. Approximately 7,000 students attend the District’s eight schools. Major employers include Vanguard Group (8,000 employees), Delage Landen Financial Services (900 employees), and Johnson Mathey, Inc. (600 employees).
  • The final issue size was $24.935 million. The All-in-Cost (AIC), which includes all fees and expenses, was 2.205% for the 14-year bond issue. The call date (prepayment option) is on February 15, 2029. The Net Present Value savings after all costs was $2,004,500 or 8.98% of refunded principal. This refunding is the largest in the history of the District.
  • With no comparable competing deals in the Pennsylvania market, Boenning & Scattergood decided to “test the waters” on Tuesday, March 30, the day before the sale, to determine buyers’ levels of interest for Aaa rated TESD bonds. Bonds of this credit quality are rare in Pennsylvania. After receiving good indications of interest from buyers, Boenning & Scattergood went out very aggressively but still had very strong competition among buyers who wanted bonds. We had sufficient demand (called “over-subscribed”) to raise prices (lower yields paid by the District from 1 to 7 basis points) on all but one of the 13 maturities.
  • Boenning & Scattergood served as Sole Underwriter for the transaction.