Bond sale starts strong
Macon County got final approval for the funding for the Franklin High project and the ensuing bond sale had higher demand than supply, meaning the project should have the $135 million needed to start.
At its Sept. 10 meeting, the N.C. Local Government Commission unanimously approved Macon County’s request for $69 million in limited obligation bonds. The approval was part of the commission’s consent agenda, meaning there was no debate or discussion. The commission did not specifically talk about the FHS bond before the vote.
The Limited Obligation Bonds for the $69 million debt to fund the Franklin High School project went to the market the next day, Sept. 11. The bonds were sold via public offering in the capital markets. The Robert W. Baird Co. and Wells Fargo underwrote the bond.
According to Macon County Finance Director Lori Hall, the interest rate (True Interest Cost) for the 20-year bond ended up being 3.46%, below the projected rate of 3.77% and well below the preliminary planning rate of 5%.
“The county had good reception in the market with more demand from investors to purchase bonds than the actual amount of bonds we needed to sell,” Hall said. “I am very pleased with the results.”
Financial advisor Mitch Brugulio of Davenport and Co. told Macon County officials multiple times over the last couple of years the county could take on the debt and their credit ratings would make those bonds sought after in the market.
The bond sale will close on Sept. 26. Afterward, the county will receive the money from that bond sale. A tentative start date for the project is Nov. 18.
The $135,553,575 project, as per the guaranteed maximum price submitted to the state, consists of the construction of a new Franklin High School, a new football/track stadium and then demolition of the current school. Plans are for the new school to be done by the first day of class in August 2026 and the stadium around the same time. Demolition of the current school will take place through the end of 2026.