The Alabama Building Renovation Finance Authority July 21 successfully priced about $30 million of lease revenue refunding bonds, state officials said.
The competitive offering resulted in around $5 million, or 18%, in debt-service savings that will be taken within existing maturities.
The refinanced bonds were sold in 1999 mostly for renovations and improvements to state office buildings and were scheduled to mature in 2024. State law generally requires a minimum savings of 3% to 5% before bonds can be refinanced.
“Any day we can save millions of dollars is a good day for Alabama,” Gov. Bob Riley said in a statement.
The bonds were rated AA by Fitch Ratings, Aa2 by Moody’s Investors Service, and AA-minus by Standard & Poor’s. All three rating agencies placed a stable outlook on the bonds.