Business
Action Item |
DATE: | Tuesday, October 28, 2014 |
TO: | School Board Members |
FROM: | MaryEllen Elia, Superintendent |
SUBJECT / RECOMMENDATIONS | |
Accept Selection of PNC Bank, National Association (N.A.) to Provide Direct Placement of Notes for the Series 2008A Certificates of Participation (COPs) (Business Division) | |
EXECUTIVE SUMMARY | |
The district's COPs, Series 2008A, currently outstanding in the amount of $109,670,000, bear interest at a SIFMA Index Rate, which expires on November 21, 2014. The COPs are subject to mandatory tender for purchase on said date.
The district's Financial Advisor, Ford & Associates, Inc. issued a request for proposals and received responses from seven financial institutions for direct purchase of the district's 2008A COPs, as well as alternative structures. Based on the evaluation of the proposals by staff, financial advisor and bond counsel, we recommend the selection of PNC Bank, N.A. to provide for direct placement of the Series 2008A COPs, for a new SIFMA Index Rate commencing on November 22, 2014, and ending on November 21, 2017. Mr. Jerry Ford, Financial Advisor from Ford & Associates, Inc. is present today to answer any of the Board's questions. |
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STRATEGIC OBJECTIVES | |
• Align financial resources to support the district’s strategic goals • Demonstrate best financial practices | |
FINANCIAL IMPACT (Budgeted: Yes) | |
There will be issuance costs not to exceed $184,000, which will be paid with a transfer of Local Capital Millage to the Debt Service fund. Ford & Associates calculates a decrease in annual debt service of over $290,000 per year (the existing JP Morgan Chase facility has a fixed spread 27 basis points higher than the PNC facility). | |
EVALUATION | |
SUBMITTED BY: Steve Brady, Assistant Department Manager for Cash Management |
Susan Garcia | Gretchen Saunders | |
Manager Services and Support, Budget (813) 272-4064 |
Chief Business Officer (813) 272-4270 |
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A 6.16 | ||
Hillsborough County Public Schools (Florida) * Mtg.#20141028_644 (Board Meeting) * Section A Item# 6.16 |