Duplin County approves refinancing of 2016 bonds, locks 3.41% rate and projects $1.2M savings

Duplin County commissioners voted Dec. 1 to adopt a resolution authorizing refinancing of the county's outstanding 2016 bonds, locking an updated interest rate of 3.41% and projecting savings of just over $1.2 million over the remaining 10-year life of the debt.

Ty Woodruff, who presented the financing update, said banks returned proposals and that JPMorgan Chase remained the recommended financing provider included in the resolution. "The final rate would be a 3.41%," Woodruff said, adding that the figure reflected a morning update to rates and would be locked if the board moved forward. He told commissioners the county's current rate on the bonds is about 5% and that refinancing would lower the county's interest expense going forward.

Woodruff said the estimated savings—based on the locked rate and the remaining 10 years of payments—would be "just north of $1,200,000." Ashley Anderson of Sands Anderson, bond counsel on the transaction, was present and available to answer legal questions, he said.

After opening a statutorily required public hearing and hearing no substantive public concerns, Commissioner Edwards moved to adopt the resolution; Commissioner Garner seconded. The board approved the resolution by voice vote; the chair characterized the outcome as unanimous.

The refinancing will proceed toward closing in January, with the locked rate applied for the remaining life of the bonds, according to the presentation. The resolution and the bank selection were the final approvals Woodruff said were needed from the board to move the financing to closing.