Bond refi saves Cabarrus $8.9M

April 22. Cabarrus County has closed a refinancing of old debt that will save the county $8.95 million in gross debt service over the next 15 years. The County refunded a total of $119.2 million in outstanding bonds through a private placement with SunTrust Bank. As a result, Cabarrus was able to lower its average interest rate on the bonds to 2.4960 percent, resulting in a reduction of the County’s annual debt payments by approximately $650,000 per year.

The refunding process began on Dec. 15 last year when the Cabarrus County Board of Commissioners adopted a resolution authorizing a refinancing of all or a portion of the County’s outstanding 2007, 2008A, 2008C and 2009 debt obligations, which had funded various public school and jail projects. The Board held a public hearing on the refunding proposal on Jan. 20, 2015. The Board approved a resolution to move forward with the refunding proposal at its February 16 meeting, and the County’s finance department then negotiated the terms of the refunding transaction.


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