Highway bond refinancing saves state $12.6M
April 15, 2013
The Nevada Department of Transportation and state Treasurer's office have completed a bond sale refinancing $131 million in highway bonds to get a lower interest rate.
The refinancing will save the state $12.6 million in debt-service payments over the life of the bonds, a spokesman said.
The new interest rate on the bonds is 1.45 percent. Despite the low rate, officials say, there was strong demand to buy them. The state received 14 bids from investment banks.
One reason for the low rate, according to Treasurer Kate Marshall, is that Nevada has been able to maintain a solid AA+ credit rating through the recession.
The money saved will be used for a road rehabilitation project or two that were unfunded before, NDOT Director Rudy Malfabon said.