Montana refinances bonds at lower interest rates, saving $1.6 million

Montana has refinanced building bonds issued in 2005 and 2007 in a move that will save the state $1.64 million in interest.

The bonds were issued by the legislature to build the Dillon National Guard Armory, renovate Gaines Hall at Montana State University, expand and enhance the Montana Agriculture Experiment Stations and provide funding for the Montana Tech Natural Resources Building. The bonds also provided funding for two-year state schools in Billings, Helena and Great Falls and the Montana Historical Society.

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The Bullock administration says the state refinanced $29.375 million in bonds on Tuesday, lowering the interest rate by 5.52 percentage points.

State Budget Director Dan Villa says Montana's strong financial picture made the refinancing possible.