A New York State oversight board that controls Nassau County finances has opted to refinance $118 million in long-term debt as a way to save $9.7 million in lower interest payments on debt service costs.
The Nassau Interim Finance Authority (NIFA) unanimously voted at its Sept. 22 meeting following a presentation from general counsel Jeremy Wise on a plan to refinance the county's tax-exempt fixed rate debt citing lower interest rates that may rise in near future as key reason for the decision. NIFA officials expect the move to result in $5.2 million in savings on refinanced bonds that can be redeemed within 90 days. The agency also forecasts savings of $4.5 million on bonds slated to be called in 2019.
NIFA selected Sidley Austin as bond counsel for the refinancing deal and Lamont Financial Services as financial advisor. The control board expects pricing to occur Oct. 6.
"Refinancing saves the county money by reducing interest costs, which is good news for taxpayers," said Nassau County Executive Ed Mangano in a statement after the NIFA vote.
NIFA, which is empowered to issue bonds to restructure a portion of Nassau's outstanding debt, has controlled the county's finances since 2011. The suburban county located just east of New York City on Long Island is rated A2 by Moody's Investors Service.
