East Newton bonds to be available to local investors

(From the East Newton School District)

The Board of Education of the East Newton County R-VI School District, Missouri has instructed its Municipal Bond Underwriter, L.J. Hart & Company of St. Louis, Missouri, to make the $4,000,000 General Obligation Bond Issue available to local individual and institutional investors. "We appreciate the strong vote of confidence we received from local patrons at the election and want the bonds to be available to them," stated Eric Allphin, President of the Board of Education. These new money General Obligation Bonds were approved by about 81% of the voters at the April 5, 2016 election to complete safety and security upgrades; construct covered walkways; replace roofs, windows, flooring, and HVAC systems; complete high school bus barn improvements; expand the AG facility; and to complete other improvements to the existing facilities of the District as funds allow.

"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, Todd McCrackin. "At the same time, we want all local investors, who are interested in these bonds to have an opportunity to purchase them, and we want to alert them in advance of our plans," Mr. McCrackin continued.

The Board of Education selected the negotiated sale of the bonds in order to capture current market conditions, to be certain that local individual investors and banks receive an opportunity to purchase the bonds, and because the proposed interest rates are fair based upon current conditions in the municipal bond market. Mr. Allphin stated

that the District will compare proposed interest rates with the national bond indexes, other Missouri issues, and those of other states with a similar rating quality sold at competitive and negotiated sales to be certain that rates for the District’s bonds are favorable.

According to L.J. Hart & Company, the bonds are scheduled to mature from March 1, 2020 through March 1, 2036 with reoffered yields expected to range from 1.00% to 2.15%. The interest income from the bonds is exempt from federal and state of Missouri income taxes and the bonds are available in $5,000 denominations. These bonds are being sold on a first come, first served basis with approximately $1,925,000 being sold at premiums to produce additional funding for the project. Anyone interested in learning more about the Series 2016 Bonds can call L.J. Hart & Company at (800) 264-4477 to request that a prospectus be promptly mailed to them.

These bonds are to carry a "AA+" rating from Standard & Poor's Corporation due to the District's participation in the State of Missouri Direct Deposit Program coordinated through the Missouri Health and Educational Facilities Authority.

If interest rates decline in the future, the District can capture the full benefit because some of the bonds have an optional redemption (call) provision on March 1, 2021 at no penalty. The financing proceeds are anticipated to be available to the District by June 2, 2016.