ITD’s refinancing of GARVEE bonds shaves another $15.5M from debt; $41M saved so far

BOISE – Ever since the Idaho Transportation Department (ITD) took the leap into the world of Grant Anticipation Revenue Vehicle (GARVEE) bonding more than 15 years ago to pay for needed highway projects, the department has sought ways to refinance and restructure that debt to be the best possible steward of taxpayer funds.

GARVEE bonding allowed ITD to build expansion projects the driving public needed now rather than have to wait decades for traditional funding methods.

Recently, and for the fourth time overall, the department refinanced GARVEE bonds in order to save on the debt repayment. This latest refinancing saves $15.5 million in debt payments over the life of the bonds. The four refinancings have saved an aggregate estimated $41 million.

GARVEE Program Manager Amy Schroeder and ITD Controller Dave Tolman worked with their teams to take advantage of low interest rates and refinance the 2011 bond series with the last GARVEE bonds sale from the 2017 authorization of $300 million.

The refinance of $61 million of the GARVEE series 2011A bonds at 1.1% resulted in a $15.5M savings. This refinancing took place at the same time as $159M in new bonds issued for project construction and financed at an interest rate of 2.33%.