Oxnard School District

The Oxnard School District, located in Ventura County, California, successfully issued a $31 million General Obligation Bond Anticipation Note (BAN) in February 2026 to provide interim financing for Measure D and Measure I school facility projects. The note was structured as a zero‑coupon obligation maturing on February 1, 2031 and included a non‑standard stepped premium call provision uncommon in the California K–8 BAN market. Specifically, the District structured the BAN to be callable on February 1, 2029 at 102% of its accreted value, stepping down to 101% on February 1, 2030 before reaching final maturity in 2031. To support investor understanding of this atypical structure and the District’s financing plan, the underwriting team conducted an extended four‑day pre‑marketing period ahead of pricing. This early investor outreach allowed the team to proactively engage with key accounts, answer questions regarding the purpose of the BAN, the District’s future general obligation bond capacity, and the rationale behind the stepped call option. By addressing structural considerations in advance, investors were able to enter the order period with clarity and confidence.

As a result, despite the zero‑coupon format and unusual call feature, investor demand during pricing proved exceptionally strong. The order book built to 13.7 times the amount offered, with broad participation from major separately managed account platforms, crossover institutional buyers, high‑grade bond funds, and California‑focused investors. This depth of demand enabled spreads to tighten by 15 basis points from initial price talk, culminating in a final yield of 2.85%.

The execution delivered meaningful benefits to the District, including cost‑effective interim financing for near‑term capital projects, enhanced flexibility to refinance or roll into long‑term general obligation bonds when market conditions permit, and clear market validation of the District’s credit strength and financial stewardship. The combination of strong pre‑marketing engagement, broad investor sponsorship, and successful repricing resulted in notably tight levels relative to comparable California short‑term general obligation credits—particularly impressive given the non‑standard call structure. Overall, the 2026 Oxnard School District zero‑coupon BAN financing stands out as an example of disciplined market timing, effective investor communication, and the successful management of a unique structural feature, ultimately producing a highly favorable outcome for the District.