The Lufkin Independent School District will issue $14.7 million of general obligation bonds after board approval of the sale.
The issue will be the first in a series of three to be issued through 2010, according to Lewis Wilks of financial adviser Coastal Securities.
Voters in the East Texas school district approved the sale last fall.
Wilks cited improving market conditions and good responses to other school bond issues in deciding to go to market.
The negotiated deal will include a retail order period, officials said. In the past, Lufkin has sold bonds competitively.
Local investors will get first shot at the bonds in an effort to encourage local investment, said superintendent Roy Knight. Competitive bidding has limited taxpayers’ ability to buy the debt, he said.
With 8,255 students, Lufkin ISD serves the city of Lufkin and Angelina County. The area’s economy is supported by timber and paper industries, along with oil and transportation products from Lufkin Industries.
Bond money will finance construction of an auditorium and classrooms at Lufkin High School. In promoting the bond issue, school officials sought to keep the tax increase to support the debt to 13 cents.
