Bond Refinancing Saves $$$
At the December Board of Education meeting, sealed bids were opened for the purchase of the $3,525,000 General Obligation Refunding bond issue. The low bidder for the bonds was First Bankers' Banc Securities, Inc. of St. Louis, Missouri and the Callaway Bank with an average interest rate of 2.77% which compares favorably with the 4.00% rate the District is presenty paying on the Series 2010A Bonds.
Through this refunding, the District reduces the future interest expense by $500,439. When the savings from the refunding is combined with the $300,000 of savings from the $500,000 prepayment of the Series 2010A Bonds, which the Board of Education respectively authorized $250,000 on June 12, 2013 and $250,000 on August 13, 2014, the District's total savings reaches $800,439. This $800,439 plus approximate savings of $2,431,806 from the District's nine refundings completed over the last twenty years brings the total savings to $3,232,245.
The District's Financial Advisor is L.J. Hart and Company.