Calhoun to Save $1.5 million from Bond Refinancing
Calhoun Community College will save about $1.5 million as the result of the recent refinancing of two capital project bonds.
According to the college’s Dean for Business and Finance Jack Burrow, the original bonds were for the Huntsville campus (a 2003 refinanced bond of $11.7 million) and the Math-Science Administration and Heath Sciences buildings located on the college’s Decatur campus (a 2005 bond initially for $25 million), which combined carried an average interest rate of 4.98 percent. “Due to the college's excellent financial position, we were able to refinance the interest rate for these bonds down to 2.84 percent, which will provide a significant savings of approximately $1.5 million over the life of the bonds,” Burrow said. The original payoff date of 2025 for both bonds remains unchanged.
“This change in the interest rate of our existing bonds will save the college about $150,000 a year,” commented Calhoun President Marilyn Beck. “The fact that we were able to refinance our bond service speaks volumes about our excellent financial health. This significant savings of $1.5 million over the life of the bonds will allow us to provide even greater services to support our students,” Beck added.