BUTLER TWP — Butler Area School District’s board approved the termination of Series 2007 bonds in a Monday, April 6, special meeting and will vote to swap it for another bond at its April 20 meeting.

The approval allowed PNC Financial, the district’s bank, and Dinsmore & Shohl, the district’s bond counselor, to terminate the bonds with JP Morgan and proceed with alternate funding of the outstanding debt.

The alternate funding may also be put toward potential new capital projects — such as roof replacements, plumbing and lighting upgrades, and gym and auditorium upgrades. The district has about $10 million in potential capital projects that will be factored into the bond swap.

Superintendent Brian White said Series 2007 bonds are variable rate bonds that usually have a high termination fee of $50,000 to $70,000, but current interest rates would neutralize the breakage fee.

“Everyone felt we needed to move very quickly,” White said.

He said favorable market conditions created a similar opportunity in 2023, but the board didn’t move quickly enough to capitalize at that time.

PNC will work with JP Morgan to finalize the bond swap breakage fee, which will affect the amount the district must borrow.

“We still have debt on these bonds we need to pay for,” White said.

He said a new bond will be advertised Monday for a vote at the April 20 board meeting.

White said the district will also benefit by coupling the bond swap with new capital projects to avoid paying certain fees twice. However, the additional borrowing will extend the district’s debt by about 18 months.

Board members at the meeting voted for the termination of the current bond unanimously. Board members Nina Teff, Phil Heasley and Jennifer Cummings were absent.