MO refinances $1.4B in debt

Following AAA credit ratings issued by both Fitch Ratings and Standard & Poor's, the Missouri government has refinanced its outstanding Board of Public Buildings debt, a move that would save taxpayers roughly $33.7 million.

“With these savings, we are again seeing the benefits of the top credit rating agencies giving Missouri their highest marks,” Gov. Jay Nixon said in a news release. “The lower interest rate and the reduced principal translate into millions of dollars saved for taxpayers."

Scott Holste, Nixon's press secretary, said the refinancing lowers the interest rate on $143 million in special obligation refunding bonds to 2.83 percent from 5.1 percent.
 
The refinancing is expected to save $26.2 million in the current fiscal year, which ends June 30, and $7.5 million in fiscal 2013.

The ratings allow the state to pay a portion of its Board of Public Buildings debt in fiscal 2012, thereby lowering the interest it has to pay on the remainder.

The Board of Public Buildings - composed of the governor, lieutenant governor and attorney general - has roughly $1.4 billion in construction bonds issued in fiscal 2012, according to the Fitch rating.
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