R.I. Convention Center Authority restructures debt

PROVIDENCE – The R.I. Convention Center Authority on Thursday announced it has restructured a portion of its debt, saving taxpayers $5.7 million in the process.
The 2015 Bonds refund the authority’s 2005 Series A Issue and a portion of its 1993 Series B Issue, said James P. McCarvill, the authority’s executive director. Existing interest rates on the 1993 and 2005 bonds range from 4 percent to 5.25 percent, while the 2015 bonds were sold at an interest rate of approximately 2.29 percent, he said.
The refinancing will reduce the debt service over the next nine years by $5.7 million, currently valued at $5.3 million, he said.
“We saw an opportunity to take advantage of the market to reduce the debt service, which will be a significant savings to taxpayers,” McCarvill said.
The sale of the bonds closed on April 14 with assistance from lead underwriter Morgan Stanley and financial adviser Public Financial Management Inc.

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