Governor Bentley Announces $7.34 Million in Bond Refinancing Savings

MONTGOMERY–The Alabama Public School and College Authority (PSCA) successfully completed the refinancing of $87.2 million of outstanding bonds, issued in 2008 and 2009 at a meeting Thursday in the Finance Director’s Office. The bond refinancing will result in savings of over $7 million over the life of the bonds.

“I am committed to cutting costs in state government wherever possible, and daily my administration works hard to ensure we are making the best use of taxpayer dollars,” Governor Robert Bentley said. “We have made substantial 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 an average true interest cost of 2.20%.

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.