Salisbury School, founded in 1901, is a non-profit, tax-exempt, all boys college preparatory boarding/day school that provides education in the arts and sciences. The School is located in the town of Salisbury in the northwest corner of Connecticut. There are approximately 260 students enrolled in grades nine through twelve (237 boarding/24 day). The School has a low faculty/student ratio, which reflects its commitment to individual attention.

Project:  Proceeds from the Series B Issue financed two new residence halls to house forty students and provide six faculty apartments. The project allows the School to increase its enrollment by 25 students, eliminate a small residence hall located across Route 44 from the main campus, and provide faculty housing. In addition, proceeds financed the construction of an athletic field and the purchase of furniture and equipment.

Structure:  $7,000,000 Issue, Series B variable rate demand bonds were structured with an initial weekly interest rate reset and a 30-year maturity. The bonds were supported by a Fleet Bank letter of credit.

Closing Date:  February 19, 2004.

Results:  The initial interest rate for the Series B issue was 0.93%. The bonds were sold to one institutional fund buyer.

Financing Team:  The Bank of New York; Carmody & Torrance LLP; Fleet Bank N.A.; Hawkins,Delafield & Wood LLP; Public Financial Management; Pullman & Comley LLC; Quick & Reilly, Inc.; Shipman & Goodwin LLP.