BWL refinances bonds; will save General Motors $4.5 million

The Lansing Board of Water & Light has refinanced bonds that paid for a multi-utility complex in General Motors’ Grand River Assembly Plant – a move that will save GM approximately $4.5 million over the life of the bonds.

“By refinancing, we were able to lower the annual interest rate by more than two percent, which translates into significant annual savings for GM,” said BWL General Manager J. Peter Lark. “General Motors remains a huge component of the Lansing area’s economy. As GM continues to meet its own set of economic challenges, refinancing the bonds not only assists GM but our own local economy as well.”

The multi-utility complex was built by the BWL to provide the GM assembly plant with electricity, water, steam and compressed air. The structure, known as the Central Utilities Complex, was completed in 2001 as part of the construction of the Grand River Assembly Plant.

The cost to build the utilities complex was $76 million. Since the complex began servicing the assembly plant, GM has been making monthly payments of more than $730,000 on the bond debt.

The bonds’ previous annual interest rate was 7.7 per year. The new, lower annual rate is 5.34 percent. When the bonds expire in 2016, GM will have saved approximately $4.5 million because of the lower rate.

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