HERMITAGE SCHOOLS Board votes to refinance bond issues

HERMITAGE, Pa. -- The Hermitage School District is saving $288,000 by refinancing an old debt.
The school board voted Monday to borrow $4.6 million through a new bond issue that is actually the second refinancing of a pair of 1991 and 1992 bond issues that financed improvements to the Artman Elementary School on North Hermitage Road.
Monique Barber, district business manager, said the bond market interest rate has dropped to the point that a second refinancing will lower the debt service over the life of the bond issue by $288,000.
The school district will take that savings in the form of reduced annual bond payments, she said.
The 1994 bonds had an interest rate of about 5 percent while the new issue will have fluctuating rates at 4 percent or less.
The new loan will run for 15 years, the same amount of time left on the 1994 refinancing, Barber said.
PNC Capital Markets of Pittsburgh is handling the new issue.