The Sonoma Valley Health Care District announced Thursday that it had completed refinancing of its 2009 general obligation bonds, saving $2.36 million in interest.
“This is a substantial savings for Sonoma property owners who pay for the bond through their property taxes, as all of the tax benefits go directly to taxpayers,” Sharon Nevins, chairwoman of the district board, said in a statement.
“There’s no direct benefit to the Hospital,” she said.
Nevins said that refinancing the bonds was a priority because interest rates were high when the bonds were issued in 2009. The bond sale included a five-year option to refinance, with the hope that interest rates would decline.
“This is exactly what happened, and the board was quick to take advantage of it,” she said.
The refinancing, completed Tuesday, involved the sale of $12,437,000 in refunding bonds, which replace the outstanding bonds. The interest rate for the refunding bonds was 3.78 percent.
Voters approved the general obligation bond in 2008 to allow Sonoma Valley Hospital to upgrade the facility to meet state seismic standards and to cover the cost of new construction and equipment.