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Alabama Public School and College Authority Announces Bond Sale and Refinancing


May 18, 2011

May 18, 2011 -- The Alabama Public School and College Authority (PSCA) successfully completed the sale of $51.3 million in Qualified Zone Academy Bonds (QZABs) and the refinancing of $28.1 million of PSCA bonds issued in 2001.  Together, the two bond deals are expected to result in savings of over $39 million over the life of the bonds.

 

Proceeds from the QZABs will be used by 16 public school systems for building renovations and other capital needs for 76 individual schools across the State of Alabama.  Because of favorable tax treatment and an interest rate subsidy by the U. S. Treasury, the school systems participating in the program will effectively pay back only 75 cents for every dollar borrowed.  See below for a full listing of all school systems that will benefit from the sale of the bonds.

 

State School Superintendent, Dr. Joe Morton, praised the sale, saying, “This is a great result for Alabama’s public schools.  These bonds will provide funds for important building renovations and repairs at a very low cost for our local school systems.”

 

The PSCA also successfully refinanced $28.1 million of its Series 2001 Bonds.  The Bonds were issued for the benefit of local systems in 2001.  The refinancing will result in present value interest rate savings totaling $4.0 million, or approximately 14% of the outstanding balance of the bonds.  All of the savings will be passed along to the local school systems which participated in the 2001 issuance through lower annual debt service.

 

State Finance Director, David Perry, said, “We are pleased that we are able to provide such significant savings for our local school systems through reduced interest costs.  These savings will allow our school systems to stretch their dollars further during this difficult budget climate.”

 

Schools participating in the QZAB transaction:

 

Decatur City

Alexander City

Mobile County

Randolph County

Macon County

Shelby County

Coffee County

Baldwin County

Houston County

Selma City

Huntsville City

Ozark City

Attalla City

Bullock County

Crenshaw County

Dale County




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