Local Investors Offered Opportunity By County

The County Commissioners of Benton County, Missouri have instructed their Underwriter, L.J. Hart & Company of St. Louis, Missouri, to make the $7,200,000 Lease Certificates of Participation available to local individual and institutional investors. “We appreciate the strong vote of confidence we received from local patrons at the April 3, 2018 election and want the certificates to be available to them,” stated Steve Daleske, Presiding Commissioner of Benton County. “We are excited to begin construction of the new jail and administrative office space for the County Sheriff’s operations,” noted Glen Nelson, Associate Commissioner.
“Since interest rates are attractive now and might increase in the future, the County wants to lock in rates as quickly as possible,” stated David Malecki, Associate Commissioner. “At the same time, we want all local investors, who are interested in these certificates to have an opportunity to purchase them, and we want to alert them in advance of our plans,” Mr. Malecki continued. The County has received an “A+” Issuer Credit Rating and “A” Lease Rating from S&P Global.
The County Commissioners selected the negotiated sale of the certificates in order to capture current market conditions, to be certain that local individual investors and banks receive an opportunity to purchase the certificates, and because the proposed interest rates are fair based upon current conditions in the municipal bond market.
According to Larry J. Hart, Chairman/CEO of L.J. Hart & Company, the Series 2019 Certificates are scheduled to mature from 2030 through 2039 with reoffered yields expected to range from 2.50% to 3.00%. The interest income from the certificates is exempt from federal and state of Missouri income taxes and the certificates are available in
$5,000 denominations. These certificates are being sold on a first come, first served basis. Anyone interested in learning more about the certificates can call the County Administrative Office at 660-438-7406, or L.J. Hart & Company at (800) 264-4477 to request that a prospectus be promptly mailed to them.
If interest rates decline in the future, the County can capture the full benefit because the certificates have an optional redemption (call) provision. The financing proceeds are expected to be available to the County by July 24, 2019.