Westminster College successfully converted about $6 million of taxable bonds to tax-exempt bonds.
The outstanding 2021B bonds, which is a total of $6,085,000, were issued through the Industrial Development Authority of Callaway County in July 2021. A portion of the funds will go to America's National Churchill Museum renovations.
The Series 2021B Bonds were one of three series of bonds issued at the time as a combination of tax- exempt and taxable revenue bonds.
The Series 2021B Bonds were expected to be converted at the time they were issued and, officials said, the May 4 conversion closing was the successful completion of that expected step.
Westminster College's outstanding Series 2021C Bonds are also expected to convert to tax-exempt bonds at a future date. Certain terms and conditions of the taxable revenue bonds are satisfied. The bonds also need to comply with the federal tax code at the time of conversion.
The college owns and operates the historic America's National Churchill Museum, which a portion of the proceeds from the bonds will be used for facility improvements, updates and renovations.
"We are obviously very pleased with the successful closing of the conversion of our Series 2021B Bonds from taxable bonds to tax-exempt bonds," said Donald P. Lofe, Jr., president and chief transformation officer of the college. "This conversion will reduce the college's borrowing costs for these specific bonds and was a significant structural and financial component of the overall Series 2021 Bonds transaction previously closed in July 2021 by the college. Westminster is, again, most appreciative of the support it received from the Authority, the Callaway County Commission, the Callaway Chamber of Commerce and the City of Fulton to successfully complete this specific transaction."
The Series 2021 Bonds were previously sold to investors in July 2021 in a private placement transaction.
UMB Bank, Capital Markets Division, acted as a placement agent with respect to the Series 2021 Bonds. Thompson Coburn LLP acted as bond counsel and legal counsel.
Gilmore & Bell, PC, acted as the placement agent's counsel in connection with the issuance of the Series 2021 Bonds. Kaufman, Hall and Associates, LLC, advised the college, both before and during the process of the issuance of the Series 2021 Bonds and in connection with the college's capital planning and analysis as well as general strategic planning initiatives.
These firms provided similar support for the closing of this specific conversion transaction. Williams-Keepers, LLP, Certified Public Accountants, provided accounting and compilation services to the college in connection with the previous transaction.