Allen County Regional Hospital board of trustees approved bond refinancing through United Missouri Bank during their meeting Tuesday night. The decision guarantees a lower interest rate on repaying a new bond issue of $4.5 million. The interest rate will drop from the current rate of 4.5 percent to 2.19 percent. The current bond issue of $5 million, arranged in 2013, expires April of 2018.
Trustees also considered an offer from Piper Jaffray, but its interest rates would have been 3.24 percent.
A plus with the new bond issue is that it comes with a fixed interest rate. The current issue is with a variable interest rate.
Total interest paid on the issue over the next 10 years will be $815,000.
According to calculations, almost $2.5 million will be saved from 2020 through 2036.
Another $80,000 can be saved if the hospital can make private placement for the bonds, lowering the cash needed for debt reduction and issue costs. The hospital will pay $505,000 in total after this approval. The first payment will be issued this December.
Allen County commissioners will have the final say on approving the bond issue.
IN A longstanding problem with the tile work in the showers in patient rooms, trustees said they have hired a mediator to bridge the differences between subcontractor Murray Construction and architects with Health Facilities Group.
