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News Release

Town of Hilton Head Island Saves More Than $1.19 Million in Bond Refinancing

Release Date: December 1, 2020

Contact Information:
Carolyn Grant email icon , Communications Director, 843-341-4618


The Town of Hilton Head Island recently issued $12.115 million in General Revenue Refunding Bonds Series 2020A and 2020B, and achieved significant savings through lower interest rates.

The new bonds replaced the Series 2011A and 2013 bonds totaling $12.250 million. The average coupon interest rate for the old bonds was 3.769%, while the True Interest Cost (TIC) for the new bonds is 1.254%. The final maturity for both the new and the refunded bonds is 2035. As a result of the lower interest rate, the Town will realize $1,194,000 in savings over the life of the bonds. The present value of the savings is $1,131,256.

Recently, the Town underwent a rigorous bond ratings process with the three major rating agencies. All of the three agencies - Moody's, Fitch's and Standard & Poor's - affirmed the Town's ratings citing strong financial practices, ample reserves, preserved debt capacity and a strong response to the COVID-19 pandemic. The ratings on the General Obligation bonds were affirmed at:

  • Moody's: Aaa
  • Fitch: AA+
  • Standard & Poor's: AA+

"The favorable ratings' reports were integral in driving demand for the bonds. The Town was able to take advantage of current market conditions to lock-in very favorable rates and achieve more than $1,194,000 in savings," said Town Manager Stephen G. Riley.

Riley said money saved from refunding the two bond issues will be welcomed news during this current public health pandemic. "The funds may eventually be used for future capital projects in accordance with the Town's capital improvements plan," he said.

For information about the Town's bond profile, ratings and debt management policies, visit www.hiltonheadislandsc.gov