Pawtucket approves refinancing of Tidewater Landing bonds to cut interest costs

The Pawtucket City Council on Nov. 10 approved a resolution authorizing city actions and financing documents to refinance Redevelopment Agency revenue bonds issued for Phase 1A of the Tidewater Landing project. The council acted after a finance committee recommendation and an adviser presentation that described a refinancing opportunity expected to lower borrowing costs for the bond series.

A municipal adviser explained to the finance committee that the Tidewater bonds were originally issued at about a 7.5% interest rate and carried a complex structure tied to project revenues. Completion of the project and a state pledge to cover any shortfalls have raised the bonds to investment-grade, the adviser said, enabling a refunding that should reduce yields to under 5% and generate substantial present-value savings for…