WOW bond offer by the numbers

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In the face of defaulting on more than $36 million of revenue bonds that paid for the facility, the Board of the Wonders of Wildlife museum came to a decision to refinance. In 1999, the American National Fish and Wildlife Museum District, the political subdivision that owns the museum, issued $36,185,000 of revenue bonds to finance construction. Other sources of start-up investments were $18 million in private contributions in the forms of cash, land or in-kind capital, a $7.5 million appropriation from the state and a Missouri Development Finance Board loan of $2.5 million.|ret||ret||tab|

Considering the museum's financial shortfalls a deficit of $5.2 million over two years museum officials said debt service cannot be met and the museum is in danger of closing.|ret||ret||tab|

In letters mailed to approximately 1,500 bondholders, museum officials presented a cash offer of 60 cents on the dollar of the face value of the bonds if 90 percent of the outstanding bonds are tendered, or 70 cents on the dollar if 95 percent of the outstanding bonds are tendered.|ret||ret||tab|

The buy-out is possible through private contributions of up to $10.3 million cash from Bass Pro founder Johnny Morris and his Bass Pro Shops and Tracker Marine subsidiaries. Morris also is offering $11 million in letters of credit as security for the museum district's new variable rate demand notes. The new notes would reduce "the indebtedness of the museum from about $36 million to $11 million, at a (lower) interest rate," said Max Peterson, museum interim director.|ret||ret||tab|

Peterson said the revenue bonds were not guaranteed and carried 7 percent interest. New variable-rate demand notes that would be issued carry interest rates between 1.5 and 2.5 percent. Stephens Inc. of Arkansas would issue the notes, which usually attract institutional investors, Peterson said.|ret||ret||tab|

Bondholders have until Feb. 6 to respond; the offer dissolves Feb. 9.|ret||ret||tab|

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