Bond Sale Nets Savings for Moon

Moon officials say the township’s newly approved 2012 bond issue will result in lower-than-projected interest rates for the township.

The bond issue was approved at the ' Dec. 7 meeting.

The township refinanced approximately $8.2 million on its two outstanding bonds, for a savings of $554,000 on its debt service, according to a Moon news release.

The township leveraged the savings to issue an additional $2.5 million in new bonds to finance capital improvement projects over the next three years.

A representative from the township’s bond adviser, Janney Montgomery Scott , told the board at its Dec. 7 regular meeting that the bond sale resulted in an average interest rate of 3.398 percent over the course of the 20-year life of the bond series.

The 2012 bond series, totaling $10.7 million, allows the township to borrow additional money without increasing its annual debt service payment and extends the life of the bond by five years.

Standard & Poor’s has issued a AA credit rating for the township.

Both of the refinanced bond series exceeded a 2 percent savings, which is recommended for bond refinancing.

Correction: Due to a typographical error, an original version of this article reported that the bond sale resulted in an average interest rate of 2.398. The correct interest rate is 3.398.