Originally published July 15, 2012 at 6 a.m., updated July 15, 2012 at 4:50 p.m.
The Industrial Development Authority of Callaway County is allowing Westminster College to refinance about $13.3 million in revenue bonds the Authority issued to the college.
Members of the authority informed the Callaway County Commission of its intentions on Friday.
Callaway County Presiding Commissioner Gary Jungermann said neither the county nor the authority is obligated in any way to back the bonds or to levy any tax in support of the bonds.
David Gilman of Fulton, president of the Industrial Development Authority of Callaway County, said the purpose of the refinancing of the revenue bonds is to allow the college to secure a lower interest rate.
“Market rates are much lower now than they were when the bonds were issued,” Gilman said.
Rob Crouse, Westminster public affairs director, said Friday the bonds have to reach certain maturity before they can be refinanced. Three series of bonds — issued in 2005, 2007 and 2010 — will be refinanced. “The refinancing is estimated to save Westminster $500,000 in interest payments in the fiscal year starting this month,” Crouse said. “Savings will be recorded in subsequent years as well.”