School District 300, Ill., 'flattens debt' with $59 million bond issue

By Lisa Kerner

Charlotte, N.C., Nov. 15 - Community Unit School District 300 (Carpentersville, Ill.) completed a partial sale of its anticipated $113.48 million general obligation refunding bonds, series 2013.

In September, the district was able to do a portion of the refunding within its pricing parameters in the amount of about $59 million, according to district chief financial officer Susan Harkin.

"We only did a partial refunding as market conditions didn't warrant issuing the full amount," Harkin said.

The district wanted to "flatten out" its debt. Proceeds will be used to refund the district's series 2001, 2006, 2007, 2010 and 2012 G.O. bonds, according to an official statement.

"Part of our restructuring was to level the district debt payment with the least cost possible to the taxpayers," Harkin said.

"We lowered the 2013 debt levy amount from $30 million to $25.5 million."

The district is allowed to levy the full bond and interest amount to the local taxpayers each year.

According to Harkin, the debt payments are structured to increase by $500,000 next year to the full amount to be levied of $30 million.

Voter approval is not required for a restructuring in the State of Illinois.

William Blair & Co., LLC was the underwriter.

The serial bonds (Aa3/AA/) totaled $59,815,000 with the following terms:

• $6.25 million maturing in 2030 with a coupon of 5.25% to yield 4.89%;

• $8,135,000 maturing in 2031 with a coupon of 5.25% to yield 4.97%;

• $19.7 million maturing in 2032 with a coupon of 5.25% to yield 5.05%;

• $21,445,000 maturing in 2033 with a coupon of 5.25% to yield 5.11%; and

• $4,285,000 maturing in 2033 with a coupon of 5% to yield 5.15%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.