Norwin considers refinancing debt
Norwin can save about $360,000 if it refinances $6 million of its debt to take advantage of low interest rates, a financial adviser told school officials this week.
The Norwin School Board on Monday is expected to vote on authorizing the refinancing of its debt from a 2011 bond issue.
“The bond (interest) rates have dropped ‘pretty significantly,’” Wes Hall, senior analyst for Public Financial Management of Harrisburg, told the school board on Monday, Feb. 11. The interest rate on a 10-year bond has dropped by 0.5 percent since November, Hall said.
Hall said they hope to lock-in the interest rates paid to investors while interest rates remain low. The bonds are more attractive to buyers because Moody’s credit rating service has given Norwin an A1 rating, meaning the district is a low credit risk for bond buyers.
The school district in October 2017 saved about $408,000 when it refinanced a 2007 bond issue, Hall said. That savings was higher than the estimated savings from refinancing this year because the district refinanced $21 million more debt last year.
Ryan Kirsch, business affairs director, said the board could stand pat and not refinance, or wait to see if the interest rates dropped lower.
“These rates are at an all-time low,” said School Director Robert Perkins.
Joe Napsha is a TribLive reporter covering Irwin, North Huntingdon and the Norwin School District. He also writes about business issues. He grew up on Neville Island and has worked at the Trib since the early 1980s. He can be reached at jnapsha@triblive.com.
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