The bonds are expected to be offered competitively on 18 hours notice as early as March 26. The bonds will be due Sept. 1, 2008-2036 and optionally callable Sept. 1, 2016 at 101%. Fitch also affirms the 'AA' rating on the department's approximately $313.9 million outstanding Florida facilities pool revenue bonds. The Rating Outlook is Stable.
The bonds are payable on parity with the outstanding bonds from trust estate revenues. Trust estate revenues consist of payments derived from the leasing to state agencies of a pool of office buildings under the jurisdiction of the department. While bond payment depends on annual legislative appropriations, the present pool consists of 60 state facilities, including new and pre-existing debt-free facilities, and accounts for approximately 5.5 million square feet of office space. Periodically, the facilities in the pool will change, but the rates are set to meet debt service. A debt service reserve equal to maximum annual debt service, will be met through purchase of a surety bond, consistent with previous practice.
