The Union R-XI Board of Education unanimously approved the sale of $8 million in general obligation bonds through its municipal bond underwriter L.J. Hart & Co.
L.J. Hart Vice President Tom Pisarkiewicz said the United Bank of Union has already agreed to purchase $4,085,000 worth of bonds to show its support of the school district.
“The local support is really terrific here,” he said. “When we first marketed the bonds, they agreed to purchase $2,955,000 and then we ran into some marketing difficulties because there was a reluctance on some of the investors to invest their money out 20 years. We went back to the bank and asked them if they would take on another $1,130,000 and they agreed to it. They are purchasing over half the finance.”
The general obligation bonds were approved by voters April 2 by a 59.47 percent majority.
The money from the sale of the bonds will allow the district to move forward with a major renovation project at all of its buildings to improve the saftey and security of the district.
The scope of the project includes new roofing and windows, tuck pointing, concrete work, security cameras and keyless locking system and other improvements.
According to L.J. Hart, the bonds will mature on March 1, 2024, through March 1, 2033, with re-offered yields ranging from 1.6 to 3.25 percent.
They also have an optional redemption provision on March 1, 2018, at no penalty to allow a prepayment with no penalty or to allow a refunding to lower rates if market conditions make it economically feasible.
Pisarkiewicz said the interest income from the bonds is exempt from federal and state income taxes.
The bonds, which carry a “AA+” rating from Standard & Poor’s Corp., are available in $5,000 denominations.
Proceeds from the sale of the bonds are expected to be available to the district by June 11, 2013.
People interested in learning more about the Series 2013 bonds may call Union Superintendent Steve Bryant at 636-583-8626, or L.J. Hart & Co. at 800-264-4477.