7/21/2011
CHARLESTON, W.Va. -Gov. Earl Ray Tomblin today announced that the issuance of the West Virginia Economic Development Authority (EDA) Lease Revenue Refunding Bonds will save taxpayers $6.39 million over the remaining life of the bonds on a net present value basis, which translates into average annual savings of approximately $490,000 over the next 13 years.
Originally issued in 2002, the refinancing of these bonds for regional jail and correctional facilities benefitted from a favorable market, low cost of borrowing and the state's high credit ratings. As announced early this month, Fitch assigned the rating of "AA" to the EDA Lease Revenue Refunding Bonds, 2011 Series A, and upgraded its rating of outstanding West Virginia general obligation debt to "AA+".
"This transaction saves the tax dollars of the hard working men and women of West Virginia," said Gov. Tomblin. "We as a state have taken prudent steps that have resulted in significant monetary savings. This shows us, in real numbers, that we have made the right decisions in managing taxpayer resources and putting our financial house in order. While we take nothing for granted, I hope that citizens across the state recognize that this savings will continue to move West Virginia forward."
The refunding bonds will mature on June 30, 2024. The proceeds of the original bond issuance financed the Huttonsville Correctional Center, Southwestern Regional Jail, Potomac Highlands Regional Jail, North Central Regional Jail, Lakin Correctional Facility for Women and James H. "Tiger" Morton Juvenile Detention Center.
Contact Information
Jacqueline Proctor
304-558-2000