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Pulaski County Special School District OKs second-lien bonds to fund school projects
Summary
The Pulaski County Special School District board authorized a second-lien bond issue to fund construction work at multiple schools, approving the bond resolution unanimously and scheduling an October closing after a 30-day FOIA safe-harbor period.
The Pulaski County Special School District board on Sept. 9 approved a resolution authorizing the issuance of second-lien bonds to raise funds for capital projects at district schools, voting unanimously to adopt the measure.
The bond sale was sized with a par amount of $15,370,000. Presenters said investor reoffering premium and standard fees left the district with net proceeds that exceeded the board’s minimum project target by roughly $142,707. The district’s advisers told the board the bonds will be dated and closed Oct. 14, 2025, after a 30‑day period established to reduce litigation risk under recent changes to Arkansas’s Freedom of Information Act.
Board members heard a breakdown of the sale from the district’s presenters. According to the summary provided to the board, the par amount was $15,370,000 and a reoffering premium of $138,415.85 was part of the receipt of funds. The underwriter’s discount was listed as $274,200.80; bond counsel fees were listed at $20,001.70. After those distributions, the presenters said the net remaining funds exceeded the minimum previously requested in the board’s bond application by approximately $142,707.
The board was also given the results of competitive bids for the issue. The winning bid came from Meso Financial with a true interest cost of about 4.35 percent; the other bids cited were Raymond James (about 4.389 percent), Robert W. Baird (about 4.447 percent) and Cardi & Company (about 4.58 percent). The bonds will be payable Feb. 1 and Aug. 1, with the first interest payment scheduled for Aug. 1, 2026, and the first principal payment in 2027. Bank OZK was named as trustee in offering documents, and the bonds include an optional five‑year call beginning Feb. 1, 2031.
Board members asked how the new proceeds would be applied against previously committed funds. Administration officials and the presenters said the district will track expenditures in accordance with tax and bond rules and that existing project commitments and obligations tied to earlier bond tranches remain in place. The presenters and administration said the district intends to exhaust earlier bond proceeds allocated to specific projects before applying the new proceeds, while continuing to account for projects and useful-life requirements in the project records.
After questions and discussion, a board member moved to approve the resolution and the motion was seconded. The board voted in favor; the chair announced the result as 7–0 in favor.
The presenters said the district and its advisers delayed the bond closing to Oct. 14 in order to observe the 30‑day window under recent changes in Arkansas law related to open‑meeting/FOIA procedures; that window, they said, reduces the risk that a court could void the issue if a FOIA violation were alleged. The board then signed the resolution and the bond team confirmed documents were in order for closing.
