Governor Bentley Announces $19.9 Million in Bond Refinancing Savings

MONTGOMERY–The State Bond Commission on Thursday approved the successful refinancing of $199.9 million of its outstanding general obligation bonds, at a meeting today in the Finance Director’s Office. The refinancing will result in savings of over $19.9 million over the remaining 12 years of the bonds.

“This year, we have saved 71 million dollars for the Alabama taxpayers with various bond refinancing,” Governor Robert Bentley said. “We have made significant progress to make government effective and efficient, and have saved taxpayers over a billion dollars annually. Today’s meeting is a continuation of the promise we made to be good stewards of the money Alabamians send to Montgomery.”

Due to a very favorable interest rate environment and Alabama’s solid credit ratings, the bonds were sold on a competitive basis with average true interest cost of 2.13%.

The bonds refunded were part of over $350 million in bond issues executed in 2006 and 2007. Savings will be realized by the General Fund and the Education Trust Fund through lower annual debt service payments.

Since May 2014, the State of Alabama has refunded three bond issues resulting in savings of over $71 million.

###

The Governor’s Press Office can be reached at 334-242-7150.