Connecticut will save nearly $95 million over 11 years from its $822 million general obligation refinancing that priced May 21, according to state Treasurer Denise Nappier.
The state offered the Series 2014C bonds with maturities ranging from 2015 through 2025 at yields ranging from 0.06% to 2.66%, Nappier said in a May 27 statement.
The overall interest cost on the refunding bonds is 1.55%. According to Nappier, the state structured the transaction to provide level savings over each of the next 11-1/2 years of about $8.25 million per year.
All four bond-rating agencies affirmed their ratings. Moody's Investors Service rates Connecticut GOs at Aa3, while Standard & Poor's, Fitch Ratings and Kroll Bond Rating Agency assign AA ratings.
According to Nappier, a large portion of the bonds being refunded are callable at par on June 4, 2014, and do not require a refunding escrow, which also contributed to the sizable refunding savings.
"On average, interest rates on municipal bonds have decreased by more than a quarter of a percent since the beginning of the year for maturities from one to 10 years, making this refunding transaction very well-timed," she said.
Morgan Stanley was lead underwriter, according to Thomson Reuters data.
