Washington sold nearly $1 billion of refunding bonds in a competitive offering on Wednesday, resulting in hundreds of millions of dollars in debt service savings.
"We've saved Washington taxpayers more than $130 million in debt service on a net present value basis," said Deputy Treasurer Ellen Evans. "That's an amazing accomplishment for one day in the market."
The state sold $934 million of refunding bonds, including $626.8 million of various purpose general obligation bonds and $307.3 million of motor vehicle fuel tax GO bonds.
That amount was upsized from the planned $765 million amount.
Net present value savings from the various purpose refunding bonds totaled $95.7 million, and savings from the motor vehicle fuel tax totaled $41 million.
"These terrific results in a very volatile market are a reflection of the state's strong financial management and credit," said Treasurer James McIntire. "The savings produced by this refinancing will be well received by Legislative budget writers next year."
There were five bids for both bond series. Bank of America Merrill Lynch won the various purpose portion with a 2.84% true interest cost. JPMorgan won the motor vehicle use tax portion with a 2.95% true interest cost.
The bonds were rated AA-plus by Standard & Poor's and Fitch Ratings, and Aa1 by Moody's Investors Service.
Piper Jaffray and Montague DeRose and Associates were financial advisors on the deal and Foster Pepper PLLC was bond counsel.
Since 2009, McIntire's office reports selling $7.01 billion in refunding bonds, saving $778.5 million on a present value basis.
