Twin Rivers Unified School District
Forward-Delivery Refunding Secures Significant Savings Ahead of Call Date
Background
Twin Rivers Unified School District (the “District”) serves students across portions of Sacramento and Placer Counties, California. As the first optional call date approached on certain outstanding 2016 general obligation refunding bonds, the District evaluated opportunities to reduce long-term debt service and generate savings while maintaining predictable tax levy requirements for its community.
On February 10, 2026, Baird’s California K-12 Public Finance group served as sole managing underwriter for the District’s $76,655,000 General Obligation Refunding Bonds, 2026 Series A (Forward Delivery) and 2026 Series B (Forward Delivery). The bonds were structured with forward-delivery settlement on May 5, 2026, in advance of the August 1, 2026 redemption date. The bonds carried underlying ratings of A+ from S&P and were insured by Assured Guaranty Inc., receiving an AA rating based on the insurance.
Opportunity
With the refunded bonds becoming callable in August 2026, the District had a defined window to capture economic benefit while keeping the redemption timing fixed. A forward-delivery structure allowed the District to lock in rates months ahead of settlement while coordinating escrow funding with the scheduled redemption.
Market conditions improved on pricing day. U.S. Treasury yields moved lower across key tenors and the MMD AAA scale firmed across much of the intermediate and long end; primary market demand was strong, with multiple new issues pricing at tighter levels. Against that backdrop, the District was positioned to execute an efficient forward refunding and secure material savings ahead of the call date.
Solution & Implementation
Baird structured two forward-delivery refunding series aligned with the District’s voter-authorized tax base and repayment streams:
- Series A – District-wide General Obligation Bonds ($54,280,000)
- Series B – Elementary Area General Obligation Bonds ($22,375,000)
The inclusion of bond insurance broadened investor participation and supported efficient execution in a competitive market environment. The financing was executed under a forward-delivery bond purchase agreement, with settlement scheduled for early May to coordinate with the August 1 redemption of the refunded maturities.
Investor demand was entirely institutional, with approximately $177 million in total orders, about 2.3x the bonds offered. Series A was approximately 2.7x subscribed, while Series B was approximately 1.4x subscribed. Orders came from 10 institutional accounts, led by bond funds (approximately 60%), followed by proprietary and trading accounts (22%), separately managed accounts (5%), and other institutional investors (13%).
Results & Impact
The forward-delivery refunding generated over $13.5 million in gross savings which equates to ~ $8.5 million in net present value savings, or over 10.0% of refunded par.
By locking in rates ahead of the call date and capitalizing on favorable market conditions, the District reduced long-term debt service while maintaining stability in its tax levy structure. The transaction highlights the value of proactive debt management, strategic use of forward-delivery structures, and strong institutional investor engagement in achieving meaningful savings for California school districts.