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Department of Transportation Bond Sale Saves State of Alabama $8.9 Million


August 25, 2011

Alabama Federal Aid Highway Finance Authority  -   Press Release

 

 

August 23, 2011 -- The Alabama Federal Aid Highway Finance Authority (AFAHFA) successfully completed the refinancing of $91.2 million in federal highway grant anticipation refunding bonds (GARVEEs) issued in 2002.  The refinancing is expected to result in total savings of $8.9 million over the remaining 6-year life of the bonds.

 

State Transportation Director, John Cooper, praised the sale, saying, “The savings that result from refinancing these bonds will fund important road construction and bridge repair throughout the state.”

 

The 2011 bonds, which were issued at an average interest rate of less than 1.5%, will result in total interest rate savings of $8.9 million, or approximately 9% of the outstanding balance of the bonds. All of the savings will be passed along to the Department of Transportation through lower annual debt service.

 

State Finance Director, David Perry, said, “We are very pleased to have achieved some of the lowest interest rates in the history of our state with this deal and to be passing along significant savings for the maintenance of our roads and bridges.  These savings will allow our Transportation Department to stretch their dollars much further during this difficult economic climate.”

 

 

For more information call Clinton Carter at 334-242-7160




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