OCTA to Refinance $57.6 Million in Bonds
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Hoping to cash in on favorable interest rates, the Orange County Transportation Authority board on Monday voted to refinance $57.6 million in bonds issued to pay for freeway improvements.
“We plan to go forward with it if interest rates remain favorable,” OCTA spokesman John Standiford said.
A recent rally in the municipal bond market brought municipal interest rates down to their lowest point in three years on July 31.
At present, the Measure M Sales Tax Revenue bonds carry a 5.96% interest rate.
The agency hopes to refinance at 5.05%. At that rate, the agency may save as much as $200,000 a year, or $1.8 million at net present value over the next 13 years.
The bonds, issued in 1992 to pay for projects such as improvements to the El Toro Y and Metrolink, are repaid with Measure M revenue.
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