{"id":45,"date":"2011-04-15T12:23:32","date_gmt":"2011-04-15T12:23:32","guid":{"rendered":"https:\/\/sudbury.ma.us\/treasurer\/2011\/04\/15\/financial-terms-defining-bond-refunding\/"},"modified":"2011-04-15T12:23:32","modified_gmt":"2011-04-15T12:23:32","slug":"financial-terms-defining-bond-refunding","status":"public-archive","type":"post","link":"https:\/\/sudbury.ma.us\/treasurer\/2011\/04\/15\/financial-terms-defining-bond-refunding\/","title":{"rendered":"Financial Terms – Defining ‘Bond refunding’"},"content":{"rendered":"
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\n\t\tSudbury recently announced the refunding of $5.08M of bonds originally sold back in 2002 for the Loring School project.  So, what is a bond refunding <\/strong>and why do it?<\/div>\n
\n\t\t <\/div>\n<\/blockquote>\n
\n\tBond Refunding<\/strong> (refinancing) is the process of redeeming a bond with proceeds received from issuing new lower-cost <\/u>debt obligations with ranking equal to or superior to the debt to be redeemed. <\/div>\n
\n\t <\/div>\n
\n\tIn this particular instance Sudbury was able to refinance existing debt issued back in 2002 at a True Interest Cost (TIC) of 4.41% for a lower rate of 2.41%.  Without extending the 10-year term remaining on the original bonds the new bond issue results in a significant savings of interest to be paid. <\/div>\n
\n\t <\/div>\n
\n\tBond refunding may produce a direct savings in debt service paid for by the tax levy.  However, the savings is distributed over the term<\/u> of the remaining debt stream.  In this particular instance, the savings is achieved without  altering (shortening or<\/em><\/strong> extending) the remaining 10 years of the 20-year term.<\/div>\n
\n\t <\/div>\n
\n\tSo, can all bonds be refunded at anytime?  (find out in the next installment of Financial Terms<\/strong><\/em>) <\/div>\n
\n\t <\/div>\n
\n\t   <\/div>\n
\n\t <\/div>\n
\n\t <\/div>\n
\n\t               <\/div>\n","protected":false},"excerpt":{"rendered":"

So, what is a ‘bond refunding’ and why do it? Read full article→<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[1,6],"tags":[],"_links":{"self":[{"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/posts\/45"}],"collection":[{"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/comments?post=45"}],"version-history":[{"count":0,"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/posts\/45\/revisions"}],"wp:attachment":[{"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/media?parent=45"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/categories?post=45"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sudbury.ma.us\/treasurer\/wp-json\/wp\/v2\/tags?post=45"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}