PROVIDENCE, R.I. – The Rhode Island Health and Educational Building Corporation (RIHEBC) announced the sale of $29.655 million in taxable bonds on behalf of the Town of East Greenwich under RIHEBC’s Public Schools Revenue Bond Financing Program. The successful bond issue was used to refund previously issued bonds from 2009 and 2012 whose proceeds were used for various Town of East Greenwich school construction projects.
The bond issue, which carried a AA+ from S&P Global Ratings, generated $4.5 million in debt service savings over the remaining term of the bond issue. On a present value basis, this equates to $3.8 million in savings, or 14.3% of the principal amount of the bonds refunded. Since a portion of the original bonds was eligible for state housing aid, approximately 30% to 40% of these savings will flow through to the state.
“In this low interest rate environment, RIHEBC was pleased to facilitate the refinance of these bonds and produce significant debt service savings for the Town of East Greenwich,” said Kim Mooers, Executive Director of RIHEBC. “RIHEBC’s ability to not only issue the initial bonds but to also monitor market conditions for savings opportunities and to access the market to secure those savings, provides benefits to both the state and municipalities.”
“We’ve been pleased to work with RIHEBC and the entire bond team to refinance this public school debt and obtain significant savings for the residents of East Greenwich,” said Trish Sunderland, Finance Director. “I would also like to thank the East Greenwich Town Council for supporting me in this initiative and many others.”
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About RIHEBC The R.I. Health and Educational Building Corporation for the past 50 years has provided financing for non-profit health and educational institutions in the state as well as municipalities for school projects. It has issued over $7 billion in tax exempt bonds and is the largest financing agency of the state.