Bond refinance to save $10.2 million
BRANSON MO NEWS:
OSWEGO — The first of two hospital revenue bonds received approval for refunding from Labette County commissioners Monday.
Labette Health is looking at up to $10.2 million in savings over 20 years by refinancing the two 2007 bond issues at lower interest rates.
Commissioners met Monday with hospital CEO Brian Williams, hospital Chief Financial Officer Tom Macaronas and Kim Bell of Gilmore and Bell, the law firm handling the bond issues.
Williams told commissioners that hospital trustees approved the bond refinance resolution on Friday. There will be two bond issues, one on Dec. 29 and another in January. The first issue will be $9,021,000 and the 2017 will be around $15 million. The interest rate is locked for the first issue at 3.55 percent, but the interest rate on the second issue is floating, but it could be locked in closer to the bond issue.
Bell said the $9 million issued yet this year will retire more than $8.4 million in the 2007 series bond issue debt. The hospital was limited in the amount of bonds that could be issued this year to under $10 million because of federal tax law. The limit is in effect because this piece of the bond issue is bank qualified.
“That gives an advantage to the …
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