May 9, 2012 - The City of Knoxville refinanced approximately $92 million in debt, taking advantage of the opportunity to save more than $18 million dollars.
On Monday, the City took bids to determine the lowest interest rate to refinance a portion of its debt, with seven financial institutions bidding. Wells Fargo was the winning bidder.
The City was paying an interest rate close to 4% and has refinanced to a rate of less than 2%.
The estimated savings during the life of the debt is $18.4 million; the annual savings is approximately $1.4 million per year through 2025.