The Indiana Housing Finance Authority completed its largest-ever bond refunding last week.

The authority closed an issue of $82.1 million of tax-exempt mortgage revenue refunding bonds June 15 in a deal headed by Goldman, Sachs & Co., according to authority officials. The issue was priced on June 4.

Ira Peppercorn, the authority's executive director, said the refunding resulted in a $19 million savings that will be used to finance new mortgages at the lowest interest rate -- 7.75% -- that the authority has ever offered.

The refunding involved bonds the authority sold in 1980 that carried an average interest rate of 8.55%, according to Mr. Peppercorn. The average interest rate on the refunded bonds is 6.68%, he added.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.