MDOT Refinances 90M Bond Debt

May 17, 2002
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LANSING — The Michigan Department of Transportation announced last Thursday that it has successfully refinanced $90 million of bond debt, a move the agency claimed will save taxpayers $67 million over nine years.

“We refinance our existing bond debt anytime we can find a rate that saves us 3 percent or more.

“We were able to save 7.2 percent on this transaction, which is the highest percentage savings anyone here at MDOT can recall,” said MDOT CAO Barbara J. Hayes.

The bonds MDOT refinanced is money the agency uses to help pay for buses, trains and other non-highway programs and projects. Hayes said MDOT would use the savings to offset future bond payments.

MDOT refinanced the bonds at an average rate of 5.2 percent for the next nine years.

The State Transportation Commission is expected to approve the refinancing this month.           

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