SANDOVAL COUNTY – County commissioners this week approved a bond refinancing deal concluded on Thursday that will save the county around $3.7 million between now and 2020.
The deal related to $55 million in bonds the county issued in 2004 backed by payments from Intel in return for a $16 billion industrial revenue bond.
This week, the county was able to refinance the $47 million in outstanding debt from the 2004 arrangement, lowering the interest rate from 4.35 percent to 2.374 percent. Under the refinancing, the county is also paying down $5 million of the outstanding bonds, which will save the county $2.8 million over six years, said Rob Burpo of First American Financial Advisors, who arranged the deal.
In addition, the amount Intel pays the county under the original 2004 arrangement will not change, while the county will be paying less to cover its debt. The difference means the county will end up with roughly $900,000 in additional income, bringing the total financial benefit to the county to $3.75 million over six years, Burpo told commissioners.