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STLCC Sells Out Certificates for Series 2012 Bonds
February 09, 2012
St. Louis Community College recently sold more than $6.4 million in leasehold refunding revenue bonds to refund the college’s Series 2003 Leasehold Revenue Bonds.
Leasehold Revenue Bonds are the primary type of debt financing the college issues and are used to raise funds for capital projects. The 2003 series initially was sold to finance the design, engineering and construction of the college’s South County Education and University Center as well as the college’s Wildwood campus. By refunding the Series 2003 bonds and replacing them with the Series 2012 sold in late January, the college will save $737,685 over the next 10 years.
“The sale of refunding bonds demonstrates the college’s commitment to fiscal responsibility as we find alternative sources to increase revenue and reduce operating expenses during these very difficult financial times,” said Myrtle E.B. Dorsey, Ph.D., STLCC chancellor.
The last Series 2012 bond will be retired in October 2022.
According to representatives of Stifel, Nicolaus & Co., Inc., the refunding bond issue underwriter, the college had three times more orders than certificates available, with more than $19 million in total orders.
In 2009, Standard & Poor’s Ratings Services raised the credit rating on STLCC to “AA+,” which the college continues to maintain. The ratings, according to representatives of S&P’s, reflects the college’s participation in an economic area that includes St. Louis City and County, its operational flexibility, strong financial operations, and low overall debt burden. The “AA+” rating indicates that the college’s capacity to meet its financial commitment on the obligation is very strong.