Leasing corporation, school board approve lease schedule; staff outline up-to-$75M financing for school projects

The Escambia County Public Schools Leasing Corporation and the Escambia County School Board each voted unanimously, 5-0, June 30 to adopt a lease schedule and a lease-and-land resolution that allow the district to proceed with a planned debt issuance to fund school capital projects.

The board’s financial advisers and underwriter described a proposed Series 2025A financing with a not-to-exceed par amount of $75,000,000 and a not-to-exceed true interest cost in the resolution; advisers said they expect the all-in cost to be substantially lower than that cap based on current market pricing.

District staff and outside advisers said the financing is being structured to delay principal amortization so the new debt “wraps around” existing obligations funded by a sales-tax referendum that sunsets in 2027. That timing, officials said, reduces near-term debt-service pressure on the district’s operating budget while enabling a package of projects now estimated at just under $60 million.

Raymond James underwriter John Eichelberger, bond counsel George Smith and financial adviser Will Reed (Ford & Associates) answered board questions about market timing and structure. Eichelberger said market timing is uncertain: “If I could predict what was gonna happen with rates, I’d be a very wealthy man sitting on an island somewhere,” and described using a negotiated sale to allow underwriter staff to time the market and drive the all‑in cost lower.

Staff identified key program elements expected to be included in the Series 2025A authorization: performing-arts facility work at Escambia High School and Tate High School; a new auditorium, gym and auditorium renovation at Pine Forest High School; and roughly $3.5–$4.0 million in classroom additions at several elementary schools. Staff said the projects were roughly just under $60 million in total but the resolution uses the higher $75 million cap to give flexibility for market structure and discounting.

Officials reviewed the district’s outstanding debt and timing: the sales-tax revenue bond that funded Beulah Middle School carried an outstanding balance of about $18.2 million at last June and is scheduled to be paid off in 2027; the district’s COPS issue that funded Myrtle Grove closed as Series 2023A with proceeds reported at about $41,000,004.59. Advisers said the district can refinance beginning about 10 years after issuance if market conditions permit.

The Leasing Corporation first adopted its agenda and then approved the lease-schedule resolution by unanimous votes. At a later special school-board meeting the board also adopted its agenda and approved a separate resolution approving the lease and land terms, also by unanimous vote. There were no amendments to the resolutions and no recorded “no” votes.

District staff said the financing will be executed as a negotiated sale to allow the underwriter’s trading desk and sales staff to identify the most advantageous market entry and to aim for lower rates, while the resolution contains “not to exceed” parameters to constrain the final deal.

Board members and staff framed the actions as authorizations to proceed with a structured financing; no final pricing or closing date was adopted at the meetings. The Leasing Corporation portion of the meeting concluded before the district’s budget workshop began.