News Column

Bond Refinancing Saves HACC $1.8 Million

June 26, 2014



HARRISBURG, Pa., June 26 -- Harrisburg Area Community College issued the following news release:

HACC, Central Pennsylvania'sCommunity College, refinanced $22.4 million of capital improvement bonds this month, June 2014. The College will save $1.8 million - an approximate 8-percent refunding savings rate - by borrowing through lower interest rates on outstanding bonds issued in 2004, 2005 and 2009.

Refinancing the outstanding capital improvement bonds will not extend the term of the original bonds; however, it will slightly accelerate payments at a lower interest rate.

The College's Board of Trustees approved refinancing of the bonds in May 2014, enabling HACC's Office of Finance to work with its independent financial advisor, Public Financial Management (https://www.pfm.com/), Harrisburg, to obtain the savings.

The College, with a strong Standard & Poor's credit rating of "A-," worked with Public Financial Management to select an underwriter through a competitive process. Boenning & Scattergood, Inc. (http://boenningandscattergood.com/), West Conshohocken, submitted the lowest bid resulting in an overall interest rate on the new bonds of approximately 2.76 percent.

"HACC is resolute in being judicious in how we steward our finances," said John J. "SKI" Sygielski, Ed.D., HACC president. "With students as our top priority, the College will continue to assess its financial efficiencies to ensure an affordable and quality education."

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