San Jose Schools to Redeem Defaulted Bonds October 29
The charter school operator will initiate a $57.8 million redemption for bondholders after defaulting last year.
Updated on Oct. 27, 2026 in Debt Relief
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Bold City Education, doing business as San Jose Schools of Florida, is offering to redeem $56.8 million in principal alongside $1 million in interest on October 29, 2026. This move follows the organization's bond default in December 2025.
Why it matters
The redemption process provides a recovery path for investors who held the Series 2021A through 2021D educational facilities revenue refunding bonds. It marks a significant financial adjustment following the organization's struggle to maintain its debt obligations.
The offer covers $56.8 million in principal and $1 million in interest for the Series 2021A-D bonds. This redemption follows a national trend that saw six charter school bond defaults in the first half of 2026.
The players
San Jose Schools of Florida
This is a charter school organization operating in Jacksonville, Florida, which functions under the legal entity Bold City Education.
UMB Bank
This financial institution is acting as the party announcing the redemption offer through the Municipal Securities Rulemaking Board.
Florida Development Finance Corp.
This is the state-level public entity that served as the original issuer of the educational facilities revenue bonds in 2021.
D.A. Davidson & Co.
This financial firm served as the underwriter for the original 2021 bond issuance used to finance the school facilities.
The details
The redemption offer applies to bonds originally issued in 2021 by the Florida Development Finance Corp. to support Jacksonville-based campuses. While UMB Bank announced the offer, the transaction's success depends on the borrower securing the required capital.
Timeline
The bonds were originally issued in 2021.
San Jose Schools of Florida defaulted on the bonds in December 2025.
Six charter school bond defaults occurred nationally during the first half of 2026.
The redemption announcement was posted on the EMMA website on October 23, 2026.
The scheduled date for the bond redemption is October 29, 2026.
Market Dynamics
The default of San Jose Schools reflects a continuation of the financial instability trend established by the 14 charter school bond defaults recorded in 2025. This situation highlights the ongoing risks inherent in the sector as operators navigate complex debt obligations.
Holders of the Series 2021A through 2021D bonds should monitor the redemption status closely as the October 29 deadline approaches. The final payout is contingent on the borrower providing the necessary funds, meaning the process is not guaranteed until completion.
The takeaway
The pending redemption serves as a reminder of the volatility associated with educational facility bonds for retail and institutional investors. Stakeholders should perform thorough due diligence regarding the fiscal health of underlying borrowers in the charter school market.
Further reading
For additional context on bond recovery and financial obligations, visit the Jacksonville Debt Relief section.
More information
Review the official notice and related filings at the MSRB EMMA bond information portal.
Source note: This article includes information reported by Bond Buyer.
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