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CRAWFORD CO. R-II board approves $8.5 million bond sale, preauthorizes final-terms committee
Summary
The Crawford Co. R-II board approved a resolution to sell $8.5 million in general-obligation bonds, authorizing the superintendent and the firm president to lock final interest terms. The 15-year financing would mature in 2041; trustees were told the issue carries a 5% coupon, an investor premium of about $494,000 and estimated net construction proceeds of roughly $8.88 million.
Mr. Bradman presented updated projections and asked the board to authorize marketing and sale of an $8.5 million general-obligation bond issue to fund district construction needs.
He said the plan calls for a 15-year financing with a final maturity no later than March 1, 2041 and a 5% coupon for the bonds. He described lower reoffered yields in the range of about 3.09% to 3.99% and a computed true interest cost of roughly 4.36%. He told the board the premium investors would pay is expected to be about $494,000, which more than covers estimated costs of issuance of about $15,200 and results in projected net proceeds for the district’s construction account of roughly $8.88 million.
"If you hand me a $5 bill, I'll hand you back $1.40," Mr. Bradman said, using the analogy to explain how coupon and yield calculations produce the effective interest rate paid by the district.
He also reviewed deal mechanics the board must accept: annual continuing-disclosure obligations while the bonds are outstanding; a required call feature no later than March 1, 2031; a weighted-average maturity window consistent with promises made to voters; and a final-terms committee that, as the resolution reads, will include the superintendent and the president of the firm so they can lock in interest rates without waiting for a subsequent monthly meeting.
Tammy Palmer moved to approve the resolution to sell the 2026 general-obligation bonds to LJ Harden Company and to authorize the final-terms committee; Roger Bridgeman seconded. The motion passed on a voice vote with six yes and one absent.
Next steps described by staff include moving forward with marketing to local community banks and broker-dealers, a tentative closing targeted around June 17, and execution of final documents by the authorized final-terms committee once the interest rate is set.
