Andover USD 385 to sell bonds
October 11, 2005
The Andover Public Schools Board of Education approved last night at their regular meeting a resolution authorizing the sale of a portion of the general obligation bonds approved at a special election Sept. 27. Local investors interested in receiving more information about the bonds and their pricing and yields should contact Superintendent Mark Evans at the District Office, 733-5017, as soon as possible.
The District plans to sell approximately $29 million of the total $39.68 million approved to provide the funding for phase one of the improvements. In addition, the district's financial advisor, George K. Baum and Company, indicated that the district could save approximately $480,000 in future principal and interest costs by refunding existing bonds issued in 1999 at the lower rates available today. The remaining portion of the bonds approved by voters are planned to be marketed next year or in 2007.
A representative of George K. Baum indicated that the issue had been submitted to various municipal bond insurers and that an insurance commitment could allow the bonds to be priced and marketed this week.
The bonds will have maturities ranging from 2006 through 2019. The interest on the bonds is exempt from both federal and state income taxes for Kansas investors. The insurance commitment will qualify the bonds for a AAA rating. Bonds will be available in denominations of $5,000 or multiples thereof. A closing of the transaction is anticipated for on or about Nov. 9. Preliminary pricing indicates that the shortest maturity will yield approximately 3 percent tax fee and that the longest bonds will yield approximately 4.15 percent.
