East Ouachita board approves $25 million school bond issue; proceeds to fund construction

At its July meeting, the Ouachita Parish School Board adopted a resolution finalizing the issuance and sale of $25,000,000 in general obligation school bonds, Series 2025, for the East Ouachita Parish School District.

Bond counsel Grant Schluter, who identified himself as representing bond counsel on the matter, said the sale produced a true interest cost of 4.53% and that proceeds will be available when the bonds are delivered July 22. "Because a premium was bid on the bond issue, you will net more than 25,000,000 for construction. The amount deposit in the construction fund will be 26,254,000 and change," Schluter said.

The district's advisers credited the school board's high credit rating for the favorable terms. Schluter noted the district holds a double-A-minus rating from Standard & Poor's and read excerpts describing the district's "financial stability" and "management's ability to produce nearly breakeven results year over year and keeping reserves at its formal policy level of 10 to 15% of expenditures." He said the underwriter, Stifel, and the board's financial adviser, Argent, worked together on the sale.

The board voted by voice to adopt the resolution after a motion and second. There was no recorded opposition.

Why it matters: Board members and advisers said the premium on the bonds increases the construction funds available beyond the stated $25 million issuance, and the district's credit rating helped reduce borrowing costs. The board will receive the bonds and proceeds when the issue is delivered on July 22, according to Schluter.

Next steps: The board adopted the resolution, and district staff will proceed with applying the bond proceeds to the projects specified in the district's plans.