Administrators of Saint Catherine’s Academy announced on Monday, September 15 that they will be floating a bond to finance a Multipurpose Student Center. The bond will be for ,850,000 and will be in three series for 10, 20 and 25 years. The bond will be initially earn 4% interest with a step up to 5% at the end of 10 years and 6% at the end of 20 years. The bond issuance will be done in denomination of 00 dollars and similar units thereafter.
According to the institution, the finances will be used for the center which will house a basketball court, cafeteria, locker rooms, showers, public restrooms as well as a stage to accommodate performances and commencement exercises at the institution. The upper floor of the building will have a fitness center, toilet facilities and a dormitory.
According to Ervin Perez from Legacy Fund, which is in charge of floating the bond, this is the first such bond to be attempted by any educational institution in the English speaking Caribbean. He says that “the board of governors have pledged for the security of this bond 7% of the gross revenue of the school which approximates to $172,000 for the first at least 3 years.” He added that “On an annual basis the school will transfer the pledge amount in the first number of years of $172,000 to the account which is the sinking fund agent which in this particular case Heritage Trust and Financial Services will use to provide the debt service and the principal payment when due”
The bond is currently available and the offer will close at the end of October. More information can be obtained on this offering at www.legacyfundlimited.com .
