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Bond Refunding to Generate Savings for Penn College

Pennsylvania College of Technology’s Board of Directors has approved the advanced refunding of the college’s 2008 bond series, which supported the Stage X Building Program.

Suzanne T. Stopper, vice president for finance/CFO, told the board Thursday that interest rates are extremely favorable now, and refunding will generate significant financial savings for the college through a reduction of interest costs.

Refunding the bonds, Stopper said, could save $10 million overall for the college, though she cautioned the estimate is based on multiple factors, including the condition of the market when the bonds are sold.

The board authorized the college administration to request that the Lycoming County Authority issue tax-exempt bonds on the college’s behalf in an amount not to exceed $60 million. There is no new money included in the borrowing, and the maturity date remains the same as the original borrowing: October 2037.

The Stage X Building Program, the most extensive facilities-expansion effort in Penn College’s history, featured construction of the Dauphin Hall student housing facility and the Construction Masonry Building. Also included was renovation/expansion work at the Parkes Automotive Technology Center, the Avco-Lycoming Metal Trades Center and the Hager Lifelong Education Center.

For more about Penn College, a national leader in applied technology education, call toll-free 800-367-9222.