Bond refinancing saves taxpayers $1.2 million

TRAVERSE CITY — Grand Traverse County taxpayers will save $1.2 million in interest over five years following a refinancing of $12.2 million in general obligation bonds earlier this month.

Bids were sought in December 2014. Standard and Poor's awarded NMC its AA long-term rating, signifying the college's "very strong capacity" to meet its obligations. Chemical Bank submitted the lowest interest rate of 1.38902 percent and was awarded the refinancing. 

This is the third time NMC has refinanced bonds originally issued in 1999, when voters approved $34.7 million for capital and equipment projects, including construction of a new technology education building (Parsons-Stulen Building), and demolition  and construction of the Great Lakes Campus. The first refinancing was in 2005 and the second in 2009. Collectively, taxpayers will save $3.2 million as the result of the three refinancings. 

"This outcome is a result of NMC fulfilling its duty to be a responsible steward of taxpayer dollars," said NMC President Timothy J. Nelson. "Both the actual interest savings and the very strong bond rating should give Grand Traverse County residents confidence in the college's fiscal management going forward." 

Release date: January 26, 2015

For more information:

Diana Fairbanks
Executive Director of Public Relations, Marketing and Communications 
dfairbanks@nmc.edu
(231) 995-1019