As reported in The Monett Times, the Wheaton, Missouri school district recently approved “a general obligation bond refunding,” which resulted in a savings of more than $86,000. Spencer Fane client L.J. Hart & Company of St. Louis prepared the refunding proposal, which Assistant Vice-President Brad M. Wegman explained could align with the long-range plans of the district. L.J. Hart also underwrote the Series 2015 refunding bonds.
“The bond resolution authorized the sale of $935,000 in bonds, at an average interest rate of only 2.33 percent. Series 2007 bonds carried an average interest rate of 4.20 percent by comparison. The difference reduced the future interest expense to the district, and taxpayers, by $86,423,” reported the Times.
Wegman noted that the bond refunding was made possible by three main factors: “lower interest rates than in 2007; the Series 2007 bonds are subject to prepayment on March 1, 2017, at no penalty; and the district’s ability to participate in Missouri’s direct deposit program. The program makes it possible for the district to receive an AA+ rating from Standard & Poor’s Corporation on the refunding bonds.”
Wegman also told the Times that “Security Bank of Southwest Missouri purchased $290,000 of the bonds, which helped contribute to the success of the financing.”
Spencer Fane served as Bond Counsel on the deal and prepared the legal documents necessary for issuance of the bonds. Spencer Fane routinely serves as Bond Counsel or Special Tax Counsel to public school districts, cities, counties and 501(c)3 organizations when they issue tax-exempt or tax advantaged obligations to provide new or upgraded facilities.
To read the full article on the Wheaton bond refunding, visit The Monett Times’ website here.