A bond refinancing will save the Neshaminy School District several million dollars over the next 12 years.
The recent refinancing of the $33-million 2006 high school renovation debt happened at an opportune time for the district, according to Michael Lilly of RBC Capital Markets.
Advertisements
The refinancing means the 2006 loans will be paid off by 2026 and six months sooner than previously expected. Over the course of the coming years, the district will save $3.8 million, said Lilly.
“This was a home run for us,” Lilly said, adding the district also saved about $100,000 on fees related to the debt.
The district paid more than $9 million in debt payments last year and will continue to do so for the coming years.
Advertisements
For the current district roadmap plan that involves upgrades to several schools and construction of a new elementary school in Lower Southampton, the district has borrowed $58 million, a sum that is expected to be paid off by 2038.
The district has an overall debt service of $214 million.
