The City of Sacramento has refinanced $272.9 million in fixed rate, long-term bonds as part of its contribution to the construction of the new downtown arena.
The interest rate on the bonds is 5.67 percent. That's less than the 6.7 percent that was forecast in May 2014. As a result, the city's total financial commitment will be $125 million less over 32 years than the $700.8 million that was forecast last May.
The annual debt service will be about $18 million or $3.9 million less than the amount forecast last year.
The Golden 1 Center is expected to cost $507 million. Including the bond revenues and value of donated properties, the City of Sacramento's contribution is $255 million.
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