HOT SPRINGS — The Hot Springs School Board on Tuesday adopted a resolution authorizing the issuance and delivery of a $25,590,000 construction bond to finance construction of a new high school.
Ray Beardsley, senior vice president for First Security Beardsley Public Finance, said Bank of America Securities won the low bid with a true interest cost of 3.779637%. Of the eight bidders, Raymond James & Associates Inc. followed at 3.861259% and Carty & Company Inc. offered 3.877861%. He noted that in previous discussions over the past several months, he told the board he expected the rate to fall somewhere between 3.85% and 4.35%
“We’re definitely below that, so we’re tickled to death,” he said. “The winning bid has a right to appoint whoever’s to serve as trustee. That’s where the school district makes their bond payments, so Bank of America appointed US Bank in Brandon, Miss., to serve as trustee.”
US Bank will receive $25,167,209.20 in good faith deposit, he noted, and $110,680 will go toward the finance company and attorney fees. The district has 36 months to spend $25,056,529.20. The district will close on June 1 at 10 a.m. at Friday, Eldredge & Clark LLP in Little Rock. The first bond payment of $452,056 will be received by the trustee on Dec. 1.