News

Refinancing saves $1.3 million

By Bill Moss, Published: August 6, 2012

Henderson County taxpayers will save $1.3 million thanks to the refinancing of a 2005 loan used to build the county Human Services building and pay for renovation and new construction of Dana Elementary School.

"The market's good for refinancing," Finance Director Carey McLelland told the Board of Commissioners. The county put out a request to banks seeking lower interest rates, now at 4.375 to 5.25 percent, for $18.6 million in debt. PNC bank bid 2.37 percent and Suntrust 2.36 percent. "TDBank kind of blew it out," bidding 1.98 percent, to win the refinancing deal, McLelland said.

The change will result a savings of $1.3 million over the term of the loan, or $120,000 a year. The refinancing applies to $14.3 million of the outstanding debt.
Chairman Tommy Thompson asked County Attorney Russ Burrell, who helped craft the refinancing proposal, if he had any comments to add.
"If it gets any lower they'll be paying you to borrow money," the attorney quipped.