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Board approves $32.75M municipal refunding to refinance Fernley and Fallon loans
Summary
The Board approved Series 2024D Municipal Bond Bank Refunding Bonds (up to $32.745M) to refund remaining 2015F Municipal Bond Bank loans for Fernley and Fallon, with estimated NPV savings of about 3.7% and 4.2% respectively; debt service will be paid by local government bond payments.
The State Board of Finance unanimously approved the "2024D Municipal Bond Bank Refunding Bond Resolution" on Aug. 8, authorizing up to $32,745,000 in General Obligation (Limited Tax) bonds to refund remaining 2015F Municipal Bond Bank loans. Deputy Treasurer Cari Eaton said the issuance consists of two components: a refunding for the city of Fernley with an estimated par of $25.2 million and anticipated net present value savings of roughly 3.7%, and a Fallon refunding with an estimated par of about $4.08 million and anticipated NPV savings of about 4.2%.
Eaton noted that current market conditions created the benefit for both refundings; debt service on the refunded loans will continue to be paid by local government bond payments. The series is exempt from the constitutional debt limit and is not included in the affordability model. Member Benjamin Edwards moved approval and the motion passed unanimously.
