For Immediate Release
9/28/2021
Hornberger Announces Successful Bond Refinancing
Elkton, MD: County Executive Dannielle Hornberger announced today that the County successfully refinanced approximately $115 million in bonds, significantly lowered the interest rates on the bond debt, saving the County, potentially, $28.5 million dollars in debt service, and maintained the County’s bond rating.
The County’s General Obligation Public Improvement Bonds’ interest rate was reduced from 3.47% to 2.03% and the County’s General Obligation Consolidated Refunding Bonds’ interest rate was reduced from 3.47% to 2.11%.
“I am happy to announce that the County was able to successfully lower interest rates, which in turn, will save millions of taxpayer dollars in debt service”, stated County Executive Hornberger. “This refinancing could not have been done without the hard and dedicated work of our Department of Finance.”
The County Executive went to the County Council on May 4, 2021, seeking permission to refinance bonds to take advantage of lower interest rates. After approval by the County Council on June 15, 2021, the Department of Finance immediately went to the bond market to refinance.
“With interest rates at an historic low, refinancing the County Bond debt was a priority for the Hornberger Administration,” said James Appel, Director of Finance. “We knew if interest rates held, we could potentially save millions of dollars. I am very pleased that we were not only able to get such a low interest rate but that we were able to maintain our bond rating – both of which were critical to a successful bond refinancing.”
The County maintained its bond rating of “AA+” and “Aa2”, which is generally reviewed every two years.
For media inquiries, please contact Kevin Alkinburg at kalkinburg@ccgov.org or 410-996-8454.
###
Hornberger Announces Successful Bond Refinancing
