Cash-Flush Florida Tries to Buy Back Its Bonds for First Time
- State is offering investors a tender option until Oct. 23
- Revenue collections are running $1 billion over expectations
The tender comes as Florida assesses the damages from back-to-back hurricanes.
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Florida bond investors are about to have an unusual decision to make — whether to sell their debt back to the state that issued the securities in the first place.
The state is offering its first ever buyback, or what’s known as a tender, to current holders. Essentially, state officials want to reduce their debt load, so they are offering to purchase the bonds at a premium. Usually this type of transaction is funded through a new bond sale as a refinancing tactic. But Florida is just offering cash after lawmakers set aside $500 million to pay down debt in the 2024 legislative session.