|DATE:||Tuesday, January 12, 2016|
|TO:||School Board Members|
|FROM:||Jeff Eakins, Superintendent|
|SUBJECT / RECOMMENDATIONS|
|Authorization to Proceed with Debt Refunding Opportunity for the District's 2007 Certificates of Participation (Business Division)|
|The district's financial advisor, Ford & Associates, Inc., monitors the district's outstanding Bonds and Certificates of Participation (COPs) for refinancing opportunities. At this time, Ford & Associates is recommending that the district refund the callable Series 2007 COPs to lock in debt service savings.
As of December 7, 2015, an advance refunding of the Series 2007 COPs would produce net present value savings in excess of $4 million, or 6.6 percent of refunded principal. Annual debt service savings is estimated at over $360,000 from 2018 through 2031. Fluctuations in interest rates and changes in market conditions will impact the actual results.
We recommend naming Bank of America Merrill Lynch, Citigroup and Raymond James & Associates as the underwriters for this transaction. All three firms have experience with the district's past COP issues.
Mr. Jerry Ford of Ford & Associates, Inc. will attend the board meeting to address any of the board members' questions.
|• Align financial resources to support the district's strategic goals • Demonstrate best financial practices|
|FINANCIAL IMPACT (Budgeted: No)|
|The savings realized will reduce the district's debt service obligations, thereby, increasing the amount of local capital dollars available for projects.|
|SUBMITTED BY: Steve Brady, Assistant Department Manager for Cash Management|
|Susan Garcia||Gretchen Saunders|
|Manager, Services and Support, Budget
|Chief Business Officer
|Hillsborough County Public Schools (Florida) * Mtg.#20160112_751 (Board Meeting) * Section C Item# 6.04|