Pittsburgh plans to refinance $161M in debt

Pittsburgh is preparing to refinance $161 million in debt while interest rates remain low, a move that officials say will result in significant savings.

Margaret Lanier, the city’s treasurer and finance director, said the refinancing of nearly $161.3 million would cover capital bonds issued in 2012, 2014 and 2018. She said officials anticipate $15 million in total savings on annual debt service.

City Council on Tuesday introduced a resolution that would authorize the refinancing and hiring of Downtown law firm Buchanan Ingersoll & Rooney to serve as bond counsel. Pittsburgh would pay the attorneys $112,500 over three years.

Dan Gilman, Mayor Bill Peduto’s chief of staff, said the city still intends to borrow about $50 million for capital projects in 2020.

“We’re constantly analyzing our bonds for opportunities to refinance,” he said. “The work on this probably started four months ago with our financial advisers and our bond counsel to look for the right time. The savings are even more important to the city today than they were then.”