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Tennessee State School Bond Authority authorizes up to $300 million in higher-education bonds
Summary
On June 22, 2026, the Tennessee State School Bond Authority approved a supplemental resolution authorizing up to $300 million in Higher Educational Facilities Second Program Bonds, Series 2026, and delegated the comptroller authority to finalize sale details, including method, pricing, and interest-cost limits.
The Tennessee State School Bond Authority on June 22, 2026, approved a supplemental resolution authorizing the issuance and sale of Higher Educational Facilities Second Program Bonds, Series 2026, in an amount not to exceed $300 million and delegated the comptroller to fix the details and carry out the sale.
Kayla Carr presented the proposed supplemental resolution and the accompanying preliminary official statement (POS), telling members the financing would provide new-money bonds to fund project costs and replace projects currently financed in the RCF. "New money bonds are authorized by this resolution to be issued in an amount not to exceed $300 million," Carr said, adding the sizing includes some capitalized interest and costs the schools expect to incur over the next 18 months.
Carr described the proposed structure as 20- to 30-year level debt service with amortization timed not to extend beyond each project's useful life. She said the bonds could be issued as tax-exempt or taxable and that the sale method could be competitive or negotiated; financial advisor PFM recommended a competitive sale but the team would pivot to negotiated sale if market conditions dictate. The resolution also specifies that the true interest cost shall not exceed 5.5% for tax-exempt bonds and 6.5% for taxable bonds and incorporates continuing disclosure provisions used in recent sales.
The chair moved to approve the supplemental resolution and to delegate authority to the comptroller to finalize pricing and carry out the sale; the motion was seconded and approved by roll call. Members who participated in the roll call included Comptroller Mumpower, Commissioner Bryson, Treasurer Lillard, Secretary Harker, Dr. Perry, and Ms. Addus. The authority did not receive any requests for public comment prior to the vote.
The authority also approved the minutes from its May 20, 2026 meeting earlier in the session. With no further business, the chair moved to adjourn; the roll call confirmed adjournment and the meeting ended.
Next steps: staff, bond counsel and the financial advisor will proceed with the sale process under the delegated authority granted to the comptroller; the resolution and POS provide the parameters under which staff will seek bids or negotiate a sale.
