PRESCOTT – Simmons Bank of Pine Bluff will be acting as the trustee for the Prescott School District’s new bonds of $7.980,000.
This was decided at a special meeting of the Prescott School Board Monday night when the board refunded the district’s bonded indebtedness with First Security. Ray Beardsley, with First Security, was on hand with the resolution and showed the board the ow bidder was Raymond James and Associates with an interest rate of 2.187 percent. In all, six bids were received with James being the lowest. The highest was Sun Trust at 2.48 percent.
The bonds were sold on Jan. 29 and the interest rates were well below what was expected, which will save the district money in the long run. The board was told the district will have to make two payments a year. One payment will be on the principle and interest, while the other will be an interest payment only. The closing and transfer of funds will be done at 10 a.m. on Feb. 27 at the law offices of Friday, Eldredge and Clark in Little Rock.
Simmons will receive $7,902,578.26 plus accrued interest of $11,396.22, less the district’s good faith deposit of $161,100. The actual deposit will be $7,752,874.48, but the district will get the good faith deposit back, making the amount $7,913,974.48.
The district, Beardsley said, will save $758,513.31 over the life of the bond issue.
In addition, the board entered into another three-year agreement with First Security as its financial advisor. Beardsley said the district isn’t charged for any financial services other than bond issues.
In other business, the board approved a proposed calendar for the 2020-21 school year. The calendar will now go to the Personnel Policy Committee for approval and be returned to the board for adoption.
Under the proposed calendar, school will start on Aug. 13, with the Christmas holidays beginning Dec. 23.