Bonds a topic of Butler school board’s meeting Tuesday
At a Tuesday meeting, Butler Area School Board appointed advisers to oversee the next steps regarding its variable-rate bond with a disappearing index.
Representatives from PNC Bank and Dinsmore & Shohl law firm presented information regarding the school’s bond, which is operating with the Libor index. The index will no longer be in use by June 2023, according to Brian White, Butler Area School District superintendent.
“We have a variable-rate bond. The index it’s based on is disappearing, and we don’t know the liability with the bond holders. When we say bondholders, we’re talking big investors. The new index we use could have a lesser interest rate, which could make investors angry,” he said. “We’re trying to get a fixed rate bond payment to mitigate that risk.”
Board members agreed to appoint the representatives on the grounds that they stay updated with new information about possible financial solutions.
“There’s no action (being taken), just education,” White said.