GREENVILLE, N.C. (WNCT) – The City of Greenville will save $1.5 Million over 10 years due to a bond sale which will take effect on Tuesday.
The City of Greenville’s General Obligation Bonds, Series 2003 and 2006, are being refunded at current market interest rates to realize a significant savings in the financing costs related to the bonds over the next ten years.
The City has worked diligently with First Southwest Company, the City’s Financial Advisors, to refinance the 2003 and 2006 General Obligation Bonds.
“Given the current interest rate environment, all of the City’s outstanding debt was reviewed in an effort to find areas of potential savings. As a result, the terms of this refinancing indicate a savings of approximately $1.5 million over the next ten years,” said Bernita Demery, Financial Services Director.
“The department’s motto is Superior Service. We have a vision to serve as the premier financial operation of the City; empowered by an exceptional team that provides superior customer service. Taking strategic steps such as the bond refunding is an example of the type of service we continually provide,” said Mrs. Demery.
The Financial Services Department has won awards for excellence in Financial Reporting, including the Certificate of Achievement for Excellence in Financial Reporting for 26 years consecutively and several budget awards.
The City is issuing an amount not to exceed $10,500,000 in General Obligation Bonds to refinance the Series 2003 and 2006 General Obligation Bonds.
The sale date for the City of Greenville’s Refunding Bond is scheduled for Tuesday, April 12th.
Bank of America, N.A. has been selected to purchase the bonds at an interest rate of 1.89%, which is a reduction in comparison to past interest rates of 4.125-5%. Sidley Austin, LLP served as Bond Counsel for this refunding.
The bond was approved by the North Carolina Local Government Commission (LGC) in Raleigh on April 5, 2016 at the Commission’s Board meeting.
Established in 1931 by the North Carolina General Assembly, the LGC assists local government entities and public authorities across the state.
The LGC is staffed by the Department of State Treasurer and approves the issuance of debt for all units of local government in North Carolina.