Governor Kaine Announces $28.7 Million in Refinancing Savings

Press Release

-- Savings distributed to 28 Virginia school divisions and Literary Fund --

Governor Timothy M. Kaine announced today that $28.7 million in refinancing savings would be distributed to 28 Virginia school divisions and the Literary Fund. The Virginia Public School Authority (VPSA) recently refinanced certain outstanding VPSA bonds for interest rate savings. Savings will be distributed to localities in the form of a one-time credit against their July 2010 debt service payment. Savings range between $38,287 and $5,018,241.

"I am delighted that we have been able to provide savings for these localities at a time when they are struggling to balance their budgets," Governor Kaine said. "We will continue to monitor for additional refinancing opportunities to provide financial assistance to localities as we continue to deal with the economic crisis."

"The Authority, under the chairmanship of James Holland, acted quickly to lock in lower rates while borrowing costs for highly-rated issuers, such as VPSA, approached 42-year lows," said State Treasurer Manju Ganeriwala.

Localities receiving savings were participants in the seven earlier VPSA bond issues that were refinanced with the Series 2009 C refunding bonds. The amount of savings credit for any locality is determined by the locality's participation in the earlier bond issues-the larger the original bond amount, the larger the savings. The Literary Fund will also benefit, receiving approximately $4.5 million in savings from local borrowings originally subsidized by the Literary Fund.

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