JAMESTOWN, Ky. (Sept. 27, 2017) — Russell County taxpayers will save $270,000 by refinancing a nearly $3.2 million bond issue through a transaction structured by Ross, Sinclaire & Associates, LLC (RSA).
RSA served as municipal advisor to the Russell County Fiscal Court on the $3,190,000 Russell County General Obligation Refunding Bonds, which were sold on Aug. 18.
The bonds, rated A1 by Moody’s, have a total interest cost of 2.1561% and a final maturity date of Dec. 1, 2029. The total savings after all costs is $270,440 over the life of the bonds.
“This was a refinance of previously issued bonds,” said Bryan Skinner, a Financial Advisor in RSA’s Lexington office. “The new bonds now have an average coupon of 2.05% for the remaining term compared to 4.37% on the previous bonds. This is an example of how RSA works with local governments across Kentucky to help officials manage their finances and save taxpayers money.”
Two main factors contributed to the lower interest rate. When the original Series 2010 bonds were issued the county had an underlying bond rating of Baa2 (Moody’s). Since that issue the county’s bond rating has steadily increased and is currently at an A1 rating. This is a 4-notch increase.
The second contributing factor is that interest rates in general were higher back in 2010 than they are today.
Russell County judge-executive Gary D. Robertson said RSA’s expertise and advice provided a major benefit to the county and its residents.
“We appreciate the work done by Ross, Sinclaire & Associates on refinancing the county’s bonds,” Judge-executive Robertson said. “By saving the county money, we are saving the taxpayers money as well.”