Business Action Item |
DATE: Tuesday, June 10, 2008
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS
Partial Refunding of Certificates of Participation (COPs), Subseries 1998A (the "Refunded Certificates")(Business Division)
EXECUTIVE SUMMARY
In 2003 the School Board entered into a forward delivery interest rate exchange agreement with UBS AG. Pursuant to the terms of the agreement the District received a payment from UBS similar to the amount that it would have received had it been able to refund the Refunded COPs in 2003, which it could not do as a result of certain restrictions contained in the Internal Revenue Code applicable to tax exempt obligations such as the Refunded Certificates. In exchange for the payment to the District, UBS was granted the right to deliver the agreement commencing July 1, 2008 and in connection therewith it is necessary that the District refund the Refunded Certificates with variable rate refunding COPs, the interest on which will enable the District to manage its interest expense under the agreement. The new COPs will be secured by a direct pay letter of credit issued by Wachovia Bank, similar to the recently completed conversion of the Series 2004C COPs.
The refundings will be dependent upon market conditions. This agenda item has been reviewed as to legal form and sufficiency by John Stokes, Bond Counsel.
ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)
FINANCIAL IMPACT (Budgeted: No)
EVALUATION
SUBMITTED BY: Steve Brady, Assistant Department Manager of Cash Management
Susan Garcia
Manager of Services and Support, Budget (813) 272-4064 |
Gretchen Saunders
Chief Business Officer (813) 272-4270 |
A 5.19 | |
Hillsborough County Public Schools (Florida) * Mtg.#20080610_330 * Section A Item# 5.19 |