NEW CASTLE Board looking at borrowing $13.5M
Officials already borrowed $30 million to pay for the new high school.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- City school board members are considering a $13.5 million loan that would pay for the new junior high school addition and pay off some old debts.
Board members are meeting at 6 p.m. Tuesday at the Croton Administration Building.
Schools Superintendent George Gabriel said the extra money is needed to finish the building project started nearly two years ago. School officials already borrowed nearly $30 million to pay for the new high school but during construction decided they wanted to add a junior high to the building.
Abby Baxter, assistant board secretary and business manager, said just under $10 million will be used for the construction.
The rest will pay off a bond issue taken out in 1998.
The district's payment on the new bonds will be the same as the 1998 bond issue, but the district will get some money back after the new bonds are issued at a lower interest rate, she said.
'Swap transaction'
The school board is also considering an "interest rate swap transaction" for the $28 million now paying for the new high school construction.
Baxter said it will only happen if the stock market conditions are right and the district is guaranteed to get money back.
Representatives from J.P. Morgan, the district's bond underwriter, will be at Tuesday's meeting to explain the mechanics of the swap transaction.
A spokesman said Friday the company prohibits direct comment to the press.