Westminster College Announces Closing of $13,010,000 Bond Financing
FULTON, MO — August 11, 2021: Westminster College (the “College”) announced the successful closing of its $13,010,000 (Par Value) Series 2021 Bonds issued through the Industrial Development Authority of Callaway County, MO (the “Authority”), on July 29, 2021. The Series 2021 Bonds are a combination of tax-exempt and taxable revenue bonds. The taxable revenue bonds are expected to convert to tax-exempt bonds at a future date if certain terms and conditions of the taxable revenue bonds are satisfied as well as the bonds comply at the time of conversion with the federal tax code.
The College, located in Fulton, MO, is a nonprofit corporation and operates a private four-year college. Additionally, the College owns and operates America’s National Churchill Museum (the “Museum”), for which approximately $3 million of the proceeds of the Series 2021 Bonds will be used to provide facility improvements, updates, and renovations to the historic Museum, including the continued restoration of the 17th century Christopher Wren Church of St. Mary the Virgin, Aldermanbury, which is the centerpiece of the Museum’s collection (the “Project”).
Proceeds of the Series 2021 Bonds will be used, together with other available funds, to (a) refund and redeem all outstanding Series 2012 Bonds issued by the Authority and loaned to the College, (b) fund a portion of the costs of the Project as noted above, (c) fund certain reserves for the benefit of the Series 2021 Bonds, and (d) pay certain fees and expenses incurred in connection with the sale and issuance of the Series 2021 Bonds.
“We are obviously very pleased with the successful closing of this significant financial transaction for the College,” said Donald P. Lofe, Jr., President and Chief Transformation Officer of the College. “The overall terms and conditions of the Series 2021 Bonds facilitate a more efficient and effective financial capital structure for the College as well as providing the opportunity for new liquidity to fund the Museum’s improvements and renovations.”
Lofe added the successful completion of the transaction furthers the College’s ongoing financial sustainability and transformational initiatives. “The College is most appreciative of the support that it received from the Authority, the Callaway County Commission, the Callaway Chamber of Commerce, and the city of Fulton to successfully complete this transaction,” he said.
The Series 2021 Bonds, which received significant market interest, were sold to certain sophisticated investors in a private placement transaction. UMB Bank, n.a., Capital Markets Division, acted as 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 throughout its general strategic planning. Williams-Keepers, LLC, Certified Public Accountants, provided certain accounting and compilation services to the College in connection with the transaction.
About Westminster College: Founded in 1851 and home of Winston Churchill’s “Iron Curtain” speech, Westminster College in Fulton, MO, is ranked prestigiously by U.S. News & World Report as the only National Liberal Arts College in Missouri. The institution is in the top 16 percent for graduate earnings and boasts a 98 percent placement rate. Westminster also is a Forbes Best Value College. Westminster focuses on educating and inspiring students to become the world leaders of tomorrow. To find out more about Westminster, please visit the College’s website.