Nacogdoches County saves $273,000 by refinancing debt
POSTED: Wednesday, April 25, 2012 - 11:00am
UPDATED: Wednesday, April 25, 2012 - 11:14am
Nacogdoches, Texas — The complicated issue of refinancing and restructuring some of Nacogdoches County’s prior debt was explained at length Tuesday morning when commissioners met in regular session.
The bottom line: By refinancing at a lower rate, the county stands to save about $273,000 in present value, according to Tom Lawrence, a Dallas attorney who serves as a financial advisor for the county. That amount represents nearly twice the typical 3-percent savings an entity wants to achieve to make the cost of refinancing worthwhile, he said.
“As you know, interest rates are really low right now,” Lawrence said, “and we’re going to take advantage of that ... basically lowering your cost of borrowing on a couple of older issues.”
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