The Board of Education of the Scotland County R-I School District, Missouri has instructed its Underwriter, L.J. Hart & Company of St. Louis, Missouri, to make the $1,145,000 Lease Certificates of Participation financing available to local individual and institutional investors. The proceeds from these Certificates will be used for the construction of a building addition for Early Childhood classrooms and an elementary library.
“Since interest rates are still attractive now despite recent increases, the Board of Education wants to lock in rates as quickly as possible,” stated Superintendent of Schools, Ryan Bergeson. “At the same time, we want all local investors, who are interested in these certificates to have an opportunity to purchase them, and we want to alert them in advance of our plans,” Bergeson continued.
The Board of Education selected the negotiated sale of the certificates in order to capture current market conditions, to be certain that local individual investors and banks receive an opportunity to purchase the certificates, and because the proposed interest rates are fair based upon current conditions in the municipal bond market.
The Certificates are expected to carry at least an “A-” rating from Standard & Poor’s Corporation with an “A” issuer credit rating based on evaluation of its overall credit worthiness. According to Thomas J. Pisarkiewicz, President of L.J. Hart & Company, the Series 2018 Certificates are scheduled to mature from April 15, 2023 through April 15, 2032 with interest rates expected to range from 2.00% to 3.75%. The interest income from the certificates is exempt from federal and state of Missouri income taxes and the certificates are available in $5,000 denominations. These certificates are being sold on a first come, first served basis. Anyone interested in learning more about the Series 2018 Certificates can call the Scotland County R-I School District office at (660) 465-8531 or L.J. Hart & Company at (800) 264 4477 to request that a prospectus be promptly mailed to them.
If interest rates decline in the future, the District can capture the full benefit because the certificates have an optional redemption (call) provision on or about April 15, 2022. The financing proceeds are expected to be available to the District by March 22, 2018.