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Board selects Bank of America as senior manager for Percy Julian bond issuance; bond issuance expected near $200 million
Summary
The Montgomery County Board of Education approved a resolution naming Bank of America as senior manager and Siebert Williams & Schenck and The Frasier Lanier Company as co‑managers for an underwriter team tied to financing the new Percy Julian high school. District staff said the project budget is about $175 million and the bond issuance will be approximately $200 million to reimburse prior district expenditures.
District finance staff and the board discussed the next step in financing the Percy Julian high school project during the Sept. 9 meeting. Pamela Watkins explained the district issued an RFP in June, received about 13 responses and recommended a three‑firm underwriting team with Bank of America as senior manager and Siebert Williams & Schenck and The Frasier Lanier Company as co‑managers. Watkins also said the district intends to engage Maynard Nixon PC in Birmingham as bond counsel.
Watkins told trustees that the project manager’s budget for Percy Julian is about $175,000,000 and that prior district expenditures on the project will be reimbursed through the issuance — roughly $25,000,000 of previously expended funds. She said the board’s authorized bond issuance for this project will be in the neighborhood of $200,000,000.
Board member questions focused on the percentage split of underwriting responsibilities and the final allocation among the co‑managers; financial adviser Chris Williams (Rice Advisory) said those percentages are still being finalized and can be resolved promptly.
The board moved, seconded and approved the resolution naming the underwriters and bond counsel; the approval was recorded as unanimous on a show of hands.
What it means: Naming an underwriting team and bond counsel is a procedural step necessary to proceed to the bond market; Watkins and staff said final underwriting percentages and the exact bond sizing remain to be finalized before a final sale.
Provenance: the underwriting RFP and recommendation were presented during the financial report and bond discussion portion of the meeting; the board approved the underwriter resolution under the consent agenda.
