Members of the Glenwood School Board have approved the sale of $265,000 lease certificates of participation to its municipal bond underwriter, L.J. Hart and Company of St. Louis for the purpose of acquiring land for future expansion needs. Superintendent Wayne Stewart said the certificates were all placed with West Plains Bank and Trust Company due to its strong support of the district and he is pleased that the bank was able to purchase all of the certificates.
“This reflects very favorably on the West Plains Bank and Trust Company’s willingness to assist a small local rural school district at an attractive interest rate,” Stewart said.
The certificates are scheduled to mature March 1, 2020, with a re-offered yield of 2.25 percent with principal payments taking place on an annual basis. The certificates contain an optional redemption (call) provision on March 1, 2016, at no penalty that will facilitate the reduction of future interest expense in the event of prepayment.
The financing proceeds are expected to be available to the district on March 26.
Glenwood board President Eric Martin commended Stewart and L.J. Hart and Company for developing the attractive structure of the financing with competitive interest rates while maintaining a short call feature of only one year.
“It is nice to have flexibility to potentially save our taxpayers’ money with a prepayment while receiving terrific support from the West Plains Bank and Trust