Mercersburg Borough General Purpose Authority Schedules a Public Hearing - TEFRA Notice -

NOTICE OF PUBLIC HEARING

Notice is hereby given of a public hearing to be held by the Mercersburg Borough General Purpose Authority (the “Authority”) on Wednesday, July 30, 2025, at 6:00 p.m., at Borough Hall, 113 South Main Street, Mercersburg, PA 17236. The public hearing is being held with respect to a proposed plan of financing involving the issuance by the Authority of its tax-exempt bonds (the “Bonds”) in one or more series for the Project (defined below), all as described below.

A. Initial Owner and Principal User: The Regents of the Mercersburg College (the “Academy”), a Pennsylvania nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”).

B. Maximum Principal Amount of Bonds: $129,100,000, of which up to $116,000,000 will be applicable to the New Money Project (defined below) and up to $30,000,000 to the Refunding Project (defined below), and other costs related to the Bonds described below. If issued, the Bonds are intended to be issued as qualified 501(c)(3) bonds pursuant to Section 145 of the Code.

C. Description of the Project to be Financed: The proceeds of the Bonds will be loaned to the Academy and used to finance:

(1) the current refunding (collectively, the “Refunding Project”) of all or a portion of (a) the Authority’s outstanding Educational Facilities Variable Rate Demand Revenue Bonds (The Regents of Mercersburg College Project), Series 2009 (the “2009 Bonds”), the proceeds of which were used to refinance certain prior indebtedness, the proceeds of which financed or refinanced the acquisition, construction, renovation and improvement of residential facilities, gymnasium and fitness center, physical plant, utilities and campus communications networks, and other capital projects, all located on the Academy’s Campus; and (b) the Authority’s outstanding Educational Facilities Variable Rate Demand Revenue Bonds (the Regents of Mercersburg College Project), Series 2010 (the “2010 Bonds” and, together with the 2009 Bonds, the “Refunded Bonds”), the proceeds of which were used to refinance certain prior indebtedness, the proceeds of which financed the construction, equipping and furnishing of a fine arts center and refinanced the acquisition, renovation and improvement of residential facilities, physical plant, utilities and campus communications networks and other miscellaneous capital projects, all located on the Academy’s Campus; and (c) the payment of costs of terminating any interest rate exchange agreement relating to the Refunded Bonds;

(2) the payment or reimbursement to the Academy for a portion of the costs of constructing, equipping, and developing the Academy’s new dormitory, dining hall, central plant, science, technology, engineering, and mathematics building and other miscellaneous capital projects for educational purposes, all located on the Academy’s Campus (defined below) (collectively, the “New Money Project” and, together with the Refunding Project, the “Project”);

(3) the payment of capitalized interest;

(4) the funding of any necessary debt service reserve fund and other required reserves; and

(5) the payment of certain costs incurred in connection with the issuance of the Bonds.

D. Location of Project: The Academy’s campus, located at 100 Academy Drive, Mercersburg, PA 17236 (the “Academy’s Campus”).

The public is invited to attend the hearing at the time and address set forth above and/or submit written comments to the Mercersburg Borough General Purpose Authority, Borough Hall, 113 South Main Street, Mercersburg, PA 17236. Written comments must be submitted to the Authority at the above address by the close of business on July 29, 2025. Comments made at the hearing are for the consideration of the Authority and will not bind any legal action to be taken by the Authority.

THE BONDS WILL BE A LIMITED OBLIGATION OF THE AUTHORITY, PAYABLE SOLELY FROM PAYMENTS TO BE MADE TO THE AUTHORITY BY THE ACADMEY. THE BONDS WILL NOT BE OBLIGATIONS OF THE COMMONWEALTH OF PENNSYLVANIA, THE MERCERSBURG BOROUGH, NOR OF ANY OTHER CITY, BOROUGH, TOWNSHIP OR OTHER POLITICAL SUBDIVISION OF THE COMMONWEALTH OF PENNSYLVANIA. THE AUTHORITY HAS NO TAXING POWER.

This Notice is published, and the public hearing is being held by and on behalf of the Authority as the issuer of the Bonds, in accordance with the public notice requirements of Section 147(f) of the Code.

MERCERSBURG BOROUGH GENERAL PURPOSE AUTHORITY