BC bond refinancing nets savings of $4.375 million
The Brazosport College Board of Regents approved the tax refinancing of bonds for more than $4 million in savings to the taxing district.
With assistance from its financial advisor and legal bond counsel, the College is saving taxpayers a total of $4,375,441 through two separate bond refundings and reissuances on the $70 million bond referendum approved in 2007.
Bond refunding is the concept of taking advantage of favorable interest rates by paying off higher-cost bonds with debt that has a lower net cost to the issuer of the bonds.
The first bond refinancing was approved in 2015 and saved the district more than $1.8 million. Savings on this refunding will be paid out for 17 years, through August of 2033. The second refunding, approved in February of 2016, saved the district more than $2.5 million and will go through the year 2036.
“We appreciate the strong support that community members demonstrated when they passed the 2007 bond referendum that allowed Brazosport College to build new, state-of-the-art facilities on our campus,” said Brazosport College President Dr. Millicent Valek. “It is great to be able to return that support in a very tangible way through cost saving measures such as bond refinancing.”
One of the keys to the bond refinancing was that Brazosport College has a strong credit rating from both Standard & Poor’s and Moody’s. The College also plans to keep a close eye on current rates for the possibility of saving more money in the future.
“We’re getting a very good deal and it’s allowing us to save our taxpayers this money,” said David Marshall, Brazosport College Vice President, Financial Services & CFO. “We will be continually reviewing bonds and anytime a significant savings is available to the school, we will go through this process again.”
For more information about Brazosport College, visit www.brazosport.edu or call (979) 230-3000.