Gov. Jay Nixon announced today that the State of Missouri will save a total of approximately $44 million in the current fiscal year because of bond refinancing made possible by the state's strong fiscal discipline and spotless Triple-A credit rating.
Today, the State Board of Fund Commissioners gave final approval on the refinancing of the General Obligation Refunding Bonds, Series A 2012, which will result in $23.3 million in savings in the current fiscal year. Bank of America Merrill Lynch was the winning bidder on these bonds, at a true interest cost of 0.757 percent, which is an extremely competitive interest rate.
In addition, the State Board of Public Buildings on Aug. 2 approved the refinancing of the Board of Public Buildings Series A 2012 Refunding Bonds, which will save an additional $20.3 million this fiscal year. This brings the total current-year savings on the Board of Fund Commissioners and Board of Public Buildings refinancing to approximately $44 million.
"Once again, our steadfast fiscal discipline is truly paying off for the people of Missouri," Gov. Nixon said. "By refinancing these bonds and lowering our interest rate, we are saving millions for Missouri taxpayers. That's only possible because we've balanced our budgets, held the line on taxes and kept our fiscal house in order."