The Board of Education of the Sedalia School District No. 200 of Pettis County, Missouri has instructed its Municipal Bond Underwriter, L.J. Hart & Company of St. Louis, to make the financing of $6,140,000 Series 2013 Lease Certificates of Participation available to local individual and institutional investors.
The proceeds of this financing are to be used for constructing, equipping and furnishing a multipurpose complex at Smith-Cotton High School that would include a synthetic turf field, a practice field, an all-weather track, a concession building, and a field house as well as other improvements to the existing facilities of the District.
“Completing these improvements at the new high school complex does not require any increase in the District’s tax levy and the principal is to be retired within the next thirteen years. Local fund raising efforts are currently underway to generate additional money for the project and to prepay some of these Certificates,” remarked Board President Dr. Jeffrey A. Sharp.
“Since interest rates are attractive now and might increase in the future, the Board of Education wants to lock in rates as quickly as possible,” stated Superintendent of Schools, Brad R. Pollitt. “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,” Mr. Pollitt 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 receive an opportunity to purchase the certificates, and because the proposed interest rates are fair based upon current conditions in the municipal bond market.
According to Mr. Hart, the Series 2013 Certificates are scheduled to mature from 2015 through 2027 with interest rates expected to range from 1.00 % to 3.60 %. The Lease Certificates carry a rating of A+ by Standard & Poor’s Corporation with an underlying Issuer Credit Rating of AA-, which is an upgrade from previous financings. 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 2013 Certificates can call Mr. Pollitt’s offices at 829-6450 or L.J. Hart & Company at (800) 264 4477 to request that a Preliminary Official Statement 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. The financing proceeds are expected to be available to the District by September 18, 2013.