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Alabama State Bond Commission successfully refinances $105.1 million


October 6, 2016

October 6, 2016 – The Alabama State Bond Commission successfully refinanced $105.1 million of outstanding general obligation bonds, resulting in net present value savings of more than $11 million for Alabama taxpayers.

The refinance reduced the effective interest rate on the debt by more than half, from 4.54 percent to 2.18 percent, on bonds that were originally issued in 2007 and 2010 to fund capital improvements for industry recruitment and economic development. The refinancing issue was sold by competitive bid, with Citi submitting the lowest interest rate bid.

The transaction group also accomplished a restructuring of the State's general obligation debt service to eliminate "peaks" and generate significant budgetary relief in the coming years without extending the maturity of any of the State's general obligation debt.

Since Gov. Robert Bentley took office, the administration's bond refinancing program has saved taxpayers over $100 million in future interest payments.

"This administration will continue to look for ways to generate savings without undercutting essential public services," said Finance Director Clinton Carter, who was appointed by Gov. Bentley earlier this month.




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