As a result of the recent sale of its refunding bonds, the Ohio Turnpike and Infrastructure Commission will reduce nearly $88.8 million in gross debt service payments over a 21-year period when the transaction closes in November.
To reduce financing costs with more favorable interest rate terms, the turnpike commission refinanced $356,326,000 from its 2013 series A junior-lien revenue bonds with $310,220,000 from the sale of its 2022 series A junior-lien revenue refunding bonds on February 8.
The interest rate for the refunding was locked in at 2.81 percent, which means the turnpike commission will realize a net present value savings of nearly $71.9 million—a savings of more than 20 percent.
“The interest rate we received on the refunding bonds is due to our high credit ratings, and that’s because we are a fiscally-sound organization, we control costs and our employees run the turnpike efficiently,” explained Ferzan Ahmed, P.E., executive director.
The bonds received an A+ rating from Fitch Ratings, Aa3 rating from Moody’s Investors Service, and A+ rating from S&P Global Ratings.
The bonds were sold by the turnpike commission’s underwriters, led by senior management from Citigroup Global Markets and Wells Fargo Securities, and management from Huntington Capital Markets and Loop Capital Markets.
Delivery of the bonds will occur on November 17.
