PUD Saves $353,000 by Refinancing Long-Term Debt
November 20, 2015 – Columbia River People’s Utility District (PUD) has refinanced its long-term debt to reduce interest expenses.
The PUD had outstanding 2006 Revenue Obligations with remaining principal of $5,435,000. With related financing expenses, the 2015 Electric Revenue Refunding Loan will be recorded at $5,474,118.
Favorable interest rates prompted now-retired Finance & Customer Services Manager Rick Lugar to send out a request for proposals for the refinancing this fall. Mr. Lugar and long-time PUD financial advisor Alan Dashen of Northwest Municipal Advisors reviewed six proposals that were submitted and selected a loan from US Bank as the best option. The U.S. Bank proposal provides an interest rate of 1.6% over 5 years, which results in savings of $353,000.
“Low interest rates made this an excellent time to refinance,” said Interim General Manager John Nguyen. “We will reduce expenses and still meet our goal of paying off all of the PUD’s long-term debt by 2020. I appreciate Rick’s efforts to complete this refinancing project to help us control costs and keep rates affordable.”