HARRISBURG, Pa. – HACC, Central Pennsylvania’s Community College, refinanced $22.4 million of capital improvement bonds this month, June 2014. The College will save $1.8 million – an approximate 8-percent refunding savings rate – by borrowing through lower interest rates on outstanding bonds issued in 2004, 2005 and 2009.
Refinancing the outstanding capital improvement bonds will not extend the term of the original bonds; however, it will slightly accelerate payments at a lower interest rate.
The College’s Board of Trustees approved refinancing of the bonds in May 2014, enabling HACC’s Office of Finance to work with its independent financial advisor, Public Financial Management, Harrisburg, to obtain the savings.
The College, with a strong Standard & Poor's credit rating of "A-," worked with Public Financial Management to select an underwriter through a competitive process. Boenning & Scattergood, Inc., West Conshohocken, submitted the lowest bid resulting in an overall interest rate on the new bonds of approximately 2.76 percent.
“HACC is resolute in being judicious in how we steward our finances,” said John J. “SKI” Sygielski, Ed.D., HACC president. “With students as our top priority, the College will continue to assess its financial efficiencies to ensure an affordable and quality education.”
HACC, Central Pennsylvania’s Community College, offers more than 150 career and transfer associate degree, certificate and diploma programs to nearly 20,000 students at campuses in Gettysburg, Harrisburg, Lancaster, Lebanon and York and through online classes. In addition, HACC serves more than 29,000 students in noncredit workforce development, public safety, adult basic education and continuing education programs offered at all campuses and off-site locations in many communities in Central Pennsylvania. For more information on how HACC is uniquely YOURS, visit www.hacc.edu.