Treasurer Loftis announces new bond refinance to save $48 million. Coupled with 2011 bond refinance, savings add up to $72 million in past year
April 16, 2012
(Columbia, SC) - State Treasurer Curtis Loftis announces the state has reached agreement to refinance $220 million of general obligation bonds and $288 million of State Infrastructure Bank revenue bonds. Refinancing will save taxpayers approximately $48 million. The interest rate was lowered while the term of the debt was not changed.
The bond refinance affects in stitutions across the state, including more than $75 million for previously issued projects at the University of South Carolina, Medical University of South Carolina, Clemson University and Winthrop University. Another $114 million refinanced bonds will fund public school facilities, capital improvements, economic development and transportation infrastructure.
“One of the most important responsibilities of the State Treasurer is to safeguard South Carolina’s financial health by saving money on complex debt transactions and in doing so we are very proud,” Treasurer Loftis said.
“Our office took advantage of favorable market conditions for the benefit of all South Carolinians. Saving money on debt is a windfall for the taxpayer as it allows the savings to be invested in other worthwhile projects without having to raise taxes.”
These recent savings, coupled with a $24 million refinance savings in 2011, means the Treasurer’s Office has saved taxpayers a total of $72 million in the past year by properly managing and refinancing existing debt.
In conjunction with the bond refinance, credit rating firms Moody’s and Fitch reaffirmed South Carolina’s top-rated AAA credit, while Standard and Poor‘s maintained the Palmetto State’s AA-plus rating. Rating agency Fitch praised the Palmetto State in its recent report, saying “South Carolina's 'AAA' rating rests on the state's proven ability and willingness to support fiscal balance.” Click the links to view the Fitch, Moody’s and S&P reports.
“My team works diligently to assure South Carolina taxpayers are getting the most for their hard earned dollars,” Treasurer Loftis said. “I am proud of their ability and dedication in carefully managing our financial reputation with Wall Street and pursuing opportunities that save taxpayers money. The people of South Carolina may take comfort knowing that the staff of the Treasurer’s office consistently performs at the highest level.”