City Awards Bid to Refinance Portion of Debt

Communications Director

Eric Vreeland
evreeland@knoxvilletn.gov
(865) 215-3480

400 Main St., Room 654A
Knoxville, TN 37902

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City Awards Bid to Refinance Portion of Debt

Posted: 05/09/2012
The City of Knoxville refinanced approximately $92 million in debt, taking advantage of the opportunity to save more than $18 million dollars.

On Monday, the City took bids to determine the lowest interest rate to refinance a portion of its debt, with seven financial institutions bidding. Wells Fargo was the winning bidder.

The City was paying an interest rate close to 4% and has refinanced to a rate of less than 2%.

The estimated savings during the life of the debt is $18.4 million; the annual savings is approximately $1.4 million per year through 2025.