NCORPE refinances initial bond to save $13+ million
Refinancing of the original bonds sold to finance the land purchase and development for the Lincoln County augmentation project will save more than $13 million over the next 21 years.
The bond sale for the new bonds, which totalled $86 million, was completed March 22.
Board members of the Nebraska Cooperative Republican Platte Enhancement Project (NCORPE) voted last summer to refinance the bonds, hopefully before the presidential election.
The bond sale would only be completed if the refinancing could save at least $10 million.
Conditions in the bond market turned favorable last month for the bond sale. NCORPE will realize an interest savings of $13.2 million over the life of the bonds.
The original bonds were sold in 2013 at an average interest rate of 5.2 percent.
The average interest rate of the new bonds came in at 3.7 percent.
The $13.2 million in savings represents a reduction of 11 percent in the amount of debt to be repaid by NCORPE through 2038.
To read the full story, subscribe to the e-edition online or call the Breeze at 308-394-5389 to subscribe to the print edition.