The Union R-XI Board of Education gave its approval to the sale of $675,000 lease certificates of participation to L.J. Hart & Co., the district’s municipal bond underwriter.
The 7-0 approval came at a special board meeting Wednesday, June 26.
The certificates are being used to supplement district operating funds and proceeds from fund-raising to provide funds for the installation of a turf field and other improvements to the outdoor athletic facilities.
According to L.J. Hart CEO Larry Hart, First State Community Bank of Farmington purchased the entire financing on behalf of its Franklin County branch in Washington.
The certificates also were offered to local institutions and investors.
The term certificates are scheduled to mature March 1, 2016, through March 1, 2021, with expected yields ranging from 2 to 3 percent.
The certificates also contain an optional redemption provision with no penalty on March 15, 2015, 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 proceeds from the financing are expected to be available by July 23 and the district will promptly reinvest them to earn additional interest for use in the completion of projects.
“We appreciate First State Community Bank stepping up to help us with the financing,” said Gary Young, school board president.