LRSD Announces Bid Award for Capital Improvement Plan

LRSD Announces Bid Award for Capital Improvements

The Little Rock School District, in conjunction with Stephens, Inc. and the RSI Group, LLC as co-municipal advisors, announced Wednesday that Bank of America Merrill Lynch was awarded the bid for the sale of second-lien bonds to fund $90 million in capital improvement projects. 

The District received qualified bids from four investment firms pertaining to the $92,055,000 Little Rock School District Construction Bonds Series 2017 with the best bid being received from the firm Bank of America Merrill Lynch with a true interest cost of 2.775189%. The bid results are below:

Bid Results issue size 92,055,000 Construction Bonds, dated 09212017 maturity 020133 sale date 08302017 time 10 oclock Bidder and tic fields Bank of America Merrill Lynch tic 2,775189 Robust W baird and co 2.888520 wells fargo bank 2.939999 morgan stanley and co llc 3.300161

Based on the winning bid, the District will net $93,291,592 in project funds. The District plans to use $55-60 million of the proceeds to assist in the construction of a new high school in southwest Little Rock. The remaining funds will be designated for capital improvements, including roofs, HVAC upgrades, and security enhancements.Click here to see the list of projects.  The following should be noted about this capital improvement plan:

  •         This will not add to anyone's tax rate
  •         This does not extend the debt
  •         A second lien loan is much like refinancing a mortgage on your
            house 

Pending formal acceptance of the sale by Education Commissioner Johnny Key in mid-September, the District will close on the bonds on September 23.  A groundbreaking ceremony will be held for the new high school on October 2 and the school is anticipated to open in the fall of 2020.