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Roanoke sees savings from bond sale
The issue raised money for schools, bridges, drainage and Elmwood Park, among other things.
Wednesday, February 27, 2013
The check is in from Roanoke's latest bond sale, a $39.8 million financing that saves money by refinancing some old debt and that also will fund projects ranging from work on schools to Elmwood Park.
Low interest rates mean the just-completed refinancing will save $270,000 in interest and principal payments over the next five months, and $924,000 during the fiscal year that starts July 30, Finance Director Ann Shawver said.
The savings will range between $124,000 and $343,000 a year from fiscal year 2015 to fiscal year 2026, she said.
About 40 percent of the savings will benefit the city school system. About 6 percent will go to the Western Virginia Water Authority because some of the refinanced debt paid for its facilities.
But in addition to refinancing roughly $30 million in old borrowing, the bond sale also raised new money.
Those funds include:
More than 140 investors ordered the bonds, asking for three times as many as were for sale.
Although Roanoke bonds usually pay interest at a rate 0.25 of a percentage point above triple-A rated bonds, the most credit-worthy grade, demand was so strong that the latest bonds will pay only 0.14 point more.
"It seems that everybody feels good about Roanoke. It's a good name," Shawver said.
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