(The following statement from the Washington State Treasurer's Office was
received by e-mail and was reformatted. The sender verified the statement.)
Washington Bond Sale and Refinancing Yields Savings of $79 million - $11.9
Million Available for Near Term Budgets.
January 23, 2013 - Wednesday's $554 million new bond sales and the refinancing
of $785 million outstanding general obligation bonds saved taxpayers more than
$79 million in today's dollars. This reduction in principal and interest
payments will provide more than $11.9 million to help balance budgets through
the end of the 2013-15 biennium.
State Treasurer James McIntire said great results are no accident.
"This is a $11.9 million reminder that our strong credit rating and reputation
for prudent financial management are tangible assets for the taxpayer,"
McIntire said. "With the savings from this sale, we take a small step toward
closing a substantial budget gap and another long stride in our efforts to make
sure taxpayers get the maximum value for their money."
House Appropriations Chairman Ross Hunter agreed.
"When you are tasked with finding a way to add $1.4 billion to K-12 education
and preserve the government services the public demands, every penny counts."
Hunter said. "These savings make a big difference."
Treasurer McIntire's debt management team led by Ellen Evans, has infused
greater competition and market participation into the bond sale process and
reduced debt service costs by $1.4 billion on a present value basis since 2009.
"I am grateful for the public and private sector experience Ellen Evans brings
to the table each and every day," McIntire said. "Her tireless work has
increased our access to the bond markets so that we can reduce the interest
rates we're paying on new and old debt."
The bonds refinanced today produced present value savings of more than 10
J.P. Morgan Securities beat out seven other bidders in the $637.6 million
various purpose general obligation refunding with a TIC of 2.36 percent. RBC
Capital Markets was the winning bidder on the $147.1 million motor vehicle fuel
tax refunding with a TIC of 2.67 percent.
Bank of America Merrill Lynch had the winning bid for the Series 2013D
tax-exempt General Obligation bonds at a true interest cost (TIC) of 2.98
percent. Citigroup Global Markets had the winning bid for the Series 2013E
tax-exempt Motor Vehicle Fuel Tax bonds with a TIC of 3.22 percent.
For more information visit the Office of the State Treasurer's website at
Contact: Chris McGann 360-902-9033
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