HAMILTON - The Northwest Alabama Gas District (NWAGD) unanimously voted to pass a resolution authorizing issuance of Series 2020 refunding bonds for the company during a special called meeting on Thursday, June 25, in Hamilton.
Bob Young with the Frazer Lanier Company and Attorney Rod Kanter were in attendance before the board for the signing of the resolution.
According to NWAGD General Manager Heath Reed, this resolution sees the NWAGD saving approximately $240,000 in debt payments.
Reed stated that in 2015, the gas district set up bond financing for a 15-year period that would see the company pay off its debts in 2030.
Reed stated that the company is currently paying $80,000 per month towards the full debt payment, but the new financing will see monthly payments drop to $45,000 per month.
“We found out that rates are cheaper, all the rates are cheaper lately,” said Reed.
“We’ve been able to have cheaper rates, lower our cost and lower our payments without extending the life of the bond.”
Reed stated that, although rates have been lowered, the company will still plan to payoff the outstanding debt in 2030.