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MONTROSE, N.Y. Refinancing earlier bond measures could save Hendrick Hudson School District over $80,000, said Superintendent of Business, Enrique Catalan.
These are real savings, said Catalan, a former investment banker who left the financial industry to join the school district, instead of writing a check for $1 million, were writing a check for $920,000. He also added, Were looking everywhere to save money.
The original balance on the 20 year bond was $17.5 million, and has now been paid down to $10.75 million. School districts must pay principal and interest at the same time, and cannot extend the maturity of a bond. The bond matures in 2023.
Therefore the only savings possible when a school district refinances a bond is through interest. Depending on market conditions on the day the school district sells the bond, the school district could save between $51,618 and $86,869, according to Catalans estimates.
The districts other bonds could be refinanced, said Catalan, but all of our other bonds are going to be at the point where the savings wont be worth refinancing. Catalan said underwriting fees and bankers fees would make the effort moot.
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