GSA REFINANCES MORTGAGE CERTIFICATES
GSA REFINANCES MORTGAGE CERTIFICATES WASHINGTON, Oct. 30 /PRNewswire/ -- Administrator Richard G.
Austin of the U.S. General Services Administration (GSA) announced today that GSA has successfully refinanced $101,340,000 in mortgage participation certificates (PCs).
The PCs had been issued during the early 1970s to finance the development of a number of public buildings projects around the country. Austin said present value savings were in excess of $4.6 million and that all the savings were being applied to shortening the term of the obligation. Dennis J. Fischer, chief financial officer of GSA, said the call of the First Series (1972) of participation certificates was paid from the proceeds of a substitute financing placed with the Federal Financing Bank (FFB). The FFB is an instrument of the U.S. Department of the Treasury authorized to invest in federal agency obligations. Austin said GSA is doing what many property owners have been doing over the past several months -- "We are taking advantage of the current low interest rate environment to pay down obligations of the taxpayers." Fischer said shortening the term also takes advantage of the current steep yield curve. GSA has approximately $235 million in four other series of participation certificates. Fischer said GSA will look at prevailing rates as each series comes due. GSA engaged a minority-owned Wall Street firm, the Aidoo Group, as financial advisor in the transaction. -0- 10/30/92 /CONTACT: U.S. General Services Administration, Office of Media Relations, 202-501-1231/ CO: U.S. General Services Administration ST: District of Columbia IN: SU: ;;END
IH -- DC028 -- 7343 10/30/92 17:19 EST
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|Date:||Oct 30, 1992|
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