Plainfield refinancing $8 million bond issue
BY MADHU MAYER Correspondent October 21, 2013 9:06PM
Updated: November 23, 2013 6:02AM
Just like a homeowner refinancing his mortgage at a lower interest rate, Plainfield is refinancing some its existing bond debt.
Village trustees on Monday night authorized the action for $8 million in general obligation bonds for the sewer and water fund.
Because the bond market has rallied in recent weeks, Traci Pleckham, the village’s management services director, suggested seizing the opportunity to achieve about $645,000 in savings via refinancing, beginning in fiscal 2015. The bonds will still mature in 2019, she said.
“The village (is) simply taking advantage of the reduced interest rates available in today’s market to achieve cost savings over the remaining payment schedule,” Pleckham said.
She said the refinancing would allow Plainfield to finalize the terms of the new bond sale on a day when market conditions are most favorable.
“If market conditions are such that savings are not realized, the village may not legally issue the bonds,” she said.
Village Administrator Brian Murphy said Plainfield has saved more than $1 million in interest by refinancing bonds, not including the action taken Monday.