By Lena Mitchell/NEMS Daily Journal Corinth Bureau
BOONEVILLE – The Prentiss County School Board is considering a proposal to refinance the district’s outstanding general obligation bonds for a substantial savings.
E.J. Gregory, a director with financial services firm Duncan-Williams Inc. of Memphis, Tenn., recommended to the board earlier this week that they refinance a more than $1.6 million outstanding note.
At current interest rates, the district would save about $135,000 of interest even after paying a $16,000 fee and about $33,000 for the bond issue, and the payoff date for the note would remain 2022, Gregory said.
The district currently pays interest rates of 4.45-5.1 percent, and those rates would drop to 2-2.75 percent, Gregory said. Attorney Randall Wall of the Jones, Walker law firm in Jackson, described prepare the legal documents he would prepare for the transaction.
Several school board members said they wanted to review the proposal and asked Superintendent Randal Downs to have the school district’s financial managers review it and recommend a course of action.
While the applicable interest rates have been low, they have been rising over the past two weeks, Gregory said, so the board will need to act quickly to take advantage of the opportunity.
Board members agreed that if recommended to refinance the bonds, they could hold a special meeting to consider and act on the recommendation.