Plainsboro has obtained a 1.25 percent interest rate from selling $17.3 million in bonds — coming from the library construction and other projects. But it anticipates having a net interest cost that is even less.
According to Greg Mayers, chief financial officer, the township put the bond notes out to bid and received back five proposals. “Plainsboro is very financially stable, but the economy as a whole kept bidders away from other towns.”
The winning bid, from Janney Montgomery Scott, of New York City, came with a 1.25 percent rate on the note itself, but they also paid a premium of $147,223.
“We can use that premium to offset the interest, and it reduces that percentage down to 0.4 percent,” said Mayers.
