MO bond refinancing to save millions

Missouri’s Office of Administration has refinanced $20.13 million in Series 2001 bonds at an interest rate of 1.97 percent, a move that would result in annual estimated savings of at least $212,000, starting this fiscal year.

During the life of the bonds, officials say they’ll save the state $3.6 million, according to a news release. The bonds are scheduled to be paid off in fiscal 2022, when the annual savings peak at an estimated $345,000.

Nine firms placed bids for the refinancing, and St. Louis-based Jeffries & Co. Inc. offered the lowest interest rate to win the competitive process, the release said.

The state recently received reaffirmation of its AAA bond rating, the highest possible, from Moody's, Fitch, and Standard and Poor’s rating agencies. A bond rating is a measure of the quality and safety of a bond, based on the issuer’s financial condition, and it indicates the likelihood that a debt issuer can meet scheduled interest and principal repayments, according to the release.