Refinancing Reduces State of Alaska Lease Payments by $6.2 Million
July 13, 2016
The State will benefit through lowered lease payments on the facility. By lowering the interest rate by over 4.09% the State will save $6,672,317 over the next 10 years with a present value of $6,172,590, a total savings of over 10%. Savings each fiscal year range from approximately $531,000 to $738,000 through fiscal year 2026.
This transaction is the second sale of State of Alaska lease revenue refunding bonds, picking up the remaining maturities not captured with the previous refinancing on April 2, 2015. The present value savings combined from all Goose Creek refinancing activity is $14,889,718.
These State of Alaska Lease Revenue Refunding Bonds were rated “AA” by Standard & Poor’s Ratings Services and “AA” by Fitch Ratings.
Deputy Revenue Commissioner Jerry Burnett said, “We would like to thank the Mat-Su Borough for working with the State of Alaska to take advantage of historically low interest rates to reduce the state budget.”
Edited by Mary Kauffman, SitNews
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