As local governments seek to minimize debt and affordably finance existing needs and new developments, public finance firm Gardnyr Michael Capital says refinancing municipal bonds offers diverse options.
BIRMINGHAM, Ala., Feb. 14, 2012 (GLOBE NEWSWIRE) -- Debt is an issue facing many American citizens and local governmental bodies. The constant demands of routine maintenance and new development, combined with capital improvement projects, leave many municipal bodies with tight budgetary restrictions, to say nothing of debts that ultimately burden taxpayers. New reports indicate that many local school boards are finding innovative and effective ways of alleviating their debt with minimal financial burden to citizens, often by taking advantage of historically low interest rates on municipal bonds. According to the financial planners at Gardnyr Michael Capital, refinancing these bonds offers an array of options to municipal governments seeking affordable ways to continue growth and eliminate debt.
A firm that has, since its 1991 inception, devoted itself to public financing through the issuance and sale of municipal bonds, Gardnyr Michael Capital points to the Coronado, California school board and its decision to refinance bonds as a prime example of how municipalities can take advantage of these low rates. "Given that interest on municipal bonds is at such an extreme low right now, refinancing provides a common sense option for local governments to reduce debt, or provide money needed for new developments or maintenance of current programs and facilities," comments Gardnyr Michael Capital's Nick Bryant. "These are all things that local governments have to do, regardless of economic circumstance, so these low municipal bond rates are really a major boon to municipalities."
Bryant points to two different refinancing plans under consideration by the Coronado schools, one which frontloads payments, leading to big savings now, and the other which offers steadier savings throughout the life of the bonds, which mature in 2026.
The Gardnyr Michael Capital finance expert says that both options offer different opportunities to the school board and to the taxpayers, and that the two options provide guidance on the kinds of options that municipal bond refinancing can provide to local governments throughout the country.
Gardnyr Michael Capital is a public finance firm that loans money to municipal governments, generally funded through the underwriting and sale of municipal bonds on the primary market. The company also offers expertise in trading municipal bonds on the secondary market, and in financing Community Development Districts.
ABOUT:
Gardnyr Michael Capital is an investment banking firm that emphasizes its services in public finance. Founded in 1991, the firm has grown into a team of approximately twenty-five financial professionals, with offices in Alabama, Louisiana, Texas, New York, New Jersey and Florida. Gardnyr Michael Capital specializes in underwriting, private placement and financial advisory work on behalf of states, cities, counties, and their authorities, as well as for more specialized issuers such as 501c3 and special districts.