BOND REFINANCING + REFUNDING
FLEXIBLE OPTIONS THAT CAN SAVE YOU MONEY
Municipal bond refunding is the process of issuing new bonds to replace older bonds that have reached their maturity or are about to become due. The new bonds are typically issued at lower interest rates to reduce the borrowing costs of the municipality. The proceeds from the new bond issue are used to pay off the outstanding principal and interest payments on the older bonds.
Municipal bond refunding can help reduce borrowing costs, extend the repayment period of the debt, restructure the borrowing schedule, and improve your municipalities financial position. It’s an increasingly popular strategy to manage debt and better allocate budget resources. Contact MLC today to discuss your options.
In-Depth: Bond Refinancing and Refunding >
Lower Rates, More Savings
Refinancing municipal bonds can help municipalities take advantage of lower interest rates, resulting in lower debt service payments and savings over the life of the bonds.
Improved Credit Rating
Municipalities with higher credit ratings can secure lower interest rates, reduce interest and principal payments, and reduce their overall debt burden.
Increased Flexibility
Refunding bonds may also provide municipalities with greater flexibility to manage their debt service obligations by extending the repayment term or changing the terms of repayment.
Enhanced Financial Position
Municipalities with higher credit ratings can secure lower interest rates now and in the future. Bond Refinancing and Refunding also helps reduce interest and principal payments, and reduce overall debt burden.
Reduced Risk
Bond Refinancing and Refunding can help municipalities reduce their financial risk exposure by locking in lower interest rates. This, in turn, can also minimize your exposure to interest rate changes, and mitigating the risk of default.
The MLC Advantage!
The MLC team has years of experience successfully completing Bond Refinancing and Refunding Projects. Together with our trusted financial partners, we can guide you through the process and get your project completed quickly.
