At the regularly scheduled January meeting, the Lincoln County R-III Board of Education approved the sale of $9,650,000 General Obligation Bonds to its Municipal Bond Underwriter, L.J. Hart & Company of St. Louis, Missouri.
“We appreciate the strong vote of confidence we received from our patrons during the election and want to lock in reoffered yields to the March 1, 2025 optional call date that are highly favorable at the moment,” stated Ron Mills, President of the Board of Education.
This is the final portion of the $24,500,000 of new money bonds that were approved by about 73 percent of the voters at the April 2, 2019 election. The purpose of these funds are to provide safety and security enhancements, paving, roof repairs, bus garage renovations, HVAC and lighting upgrades, and technology improvements.
The bond marketing process provided local financial institutions the first opportunity to invest.
According to Larry J. Hart, Chief Executive Officer of L.J. Hart & Company, the Bank of Old Monroe purchased $1,675,000 of the bonds.
This local support was helpful to the success of the financing.
The Board of Education selected the negotiated sale of the bonds in order to capture current market conditions, to be certain that local banks received an opportunity to purchase the bonds, and because the proposed reoffered yields were fair based upon current conditions in the municipal bond market.
These bonds carry a “AA+” rating from S&P Global due to the District’s participation in the State of Missouri Direct Deposit Program coordinated through the Missouri Health and Educational Facilities Authority.
The District also received an issuer credit rating of A+ from S&P Global which reflects favorably on the District’s financial condition and effective long range facilities planning process.
The bonds do contain optional call provisions on March 1, 2025 at no penalty that will facilitate the reduction of future interest expense in the event of prepayment or a future refunding to lower rates if market conditions make it economically feasible.
The financing proceeds are expected to be available to the District on February 6, 2020 and will be promptly reinvested by the District to earn additional interest for use in the completion of the projects.