Governor Bentley Announces $35 Million in Bond Refinancing Savings

Published 07/02 2014 05:30PM

Updated 07/02 2014 05:42PM

MONTGOMERY–The Alabama Public School and College Authority (PSCA) successfully completed the refinancing of $574.2 million of outstanding bonds, issued in 2007 at a meeting today in the Finance Director’s Office. The bond refinancing will result in savings of over $35 million over the life of the bonds.

“My administration has made a commitment to cutting costs in state government wherever possible,” Governor Robert Bentley said. “We have made significant progress and have saved taxpayers over a billion dollars annually. Today’s meeting is a continuation of the promise we made to streamline government and make it more efficient and effective.”

Due to a very favorable interest rate environment and solid credit ratings, the bonds were sold on a competitive basis with average true interest cost of 2.49%.

The bonds refunded were part of the over $1 billion bond issue executed in 2007. All of the savings will be realized by the Education Trust Fund through lower annual debt service payments.

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