Monday, February 26, 2007
Lehman Brothers Wins District 300 Bond Offering
I learned this afternoon that investment banking house Lehman Brothers submitted the lowest bid on Carpentersville School District 300 bond issue.
The rate is presumably being announced and accepted tonight.
A municipal bond expert told me that the average interest rate should not be more that 4.2%%.
But, more interesting that the exact rate will be how the school board plans to spend the extra $11 to $15 million over the $105 million face amount of the bonds.
I wonder if that will be shared at tonight’s board meeting.
The rate is presumably being announced and accepted tonight.
A municipal bond expert told me that the average interest rate should not be more that 4.2%%.
But, more interesting that the exact rate will be how the school board plans to spend the extra $11 to $15 million over the $105 million face amount of the bonds.
I wonder if that will be shared at tonight’s board meeting.
Labels: District 300, Lehman Brothers
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According to Elizabeth Hennessy the extra, or premium, $12 million can only be used to pay the interest and bond. But I wonder if D300 officials will find a way to do otherwise? You know, more creative financing.
Why pay interest on money borrowed to be used to pay interest?
I hope there is more benefit to public from this than meets my eye.
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I hope there is more benefit to public from this than meets my eye.
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