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What Monroe Public Schools’ $3M state aid note would cost: bank rate, fees, and past borrowing
Summary
Board presenters said 1st Merchants offered a 4.1% interest rate for the proposed $3 million state aid anticipation note and estimated total interest and fees at about $55,000; counsel fees remain to be billed and were not specified.
Board presenters provided specific cost information as they answered members’ questions about the proposed state aid anticipation note. Cass Shook told the board that 1st Merchants quoted an interest rate of 4.1 percent for the transaction and that bank fees include a $5,000 charge; Shook also said counsel from Collins and Blaha will bill for note counsel work but a final legal fee figure was not available.
Shook summarized the estimate that interest and associated bank costs on a $3,000,000 note are "just shy of $55,000," and she said the note counsel will file required documents with state and federal authorities. She also said, based on counsel’s opinion, the district qualifies for tax-exempt treatment for this use. The board asked for a follow-up brief with last year’s payment-option examples and for a final tabulation of legal and financing fees before closing.
