State to save $44M through refinanced bonds

The state of Missouri stands to save roughly $44 million during the current fiscal year as the result of bond refinancing, Gov. Jay Nixon announced yesterday

The State Board of Fund Commissioners gave final approval Sept. 11 to the refinancing of the general obligation refunding bonds, Series A 2012, resulting in savings of $23.3 million, according to a state news release. Bank of America Merrill Lynch was the winning bidder on the bonds, at a true interest cost of 0.757 percent.

Those refinancing savings come on the heels of the Aug. 2 approval by the State Board of Public Buildings to refinance its Series A 2012 Refunding Bonds, which will save an additional $20.3 million this fiscal year, bringing total savings to $43.6 million, the release said.

“By refinancing these bonds and lowering our interest rate, we are saving millions for Missouri taxpayers,” Nixon said in the release. “That’s only possible because we’ve balanced our budgets, held the line on taxes and kept our fiscal house in order.”