Lancashire County Council has repaid a £50m Lender Option Borrower Option Loan.
Room151 understands that the authority extended its short-term loan book – made up mainly of loans from other local authorities – to finance the deal.
The repaid LOBO was an inverse floating LOBO held by NatWest.
Mike Jensen, director for investment at the authority, told a meeting of councillors last week: “We saw a very beneficial mechanism of repaying that loan in December.
“We took advantage of the opportunity and repaid the loan on very pleasing terms for an ongoing benefit to the council.”
More details of the deal will be revealed in forthcoming council documents, he said.
