Connecticut's $840 million special tax obligation transportation bond sale included a record $441.8 million of retail orders, said state Treasurer Denise Nappier.
The state priced the sale Sept. 30 and Oct. 1 with first-day retail primarily for Connecticut residents.
The $700 million 2015 Series A proceeds will fund transportation infrastructure improvements statewide and the $139.8 million Series B will refinance bonds for savings. The refunding will produce $18.4 million in debt-service savings over 13 years, according to Nappier.
Nappier's office frequently gives individual investors priority during bond sales. "This practice benefits both the state through a low-cost source of financing and its citizens by providing them the opportunity to generate tax-exempt investment income," she said.
Nationally, more than 60% of municipal bonds are owned by individuals, either directly or through mutual funds.
Institutional investors placed $2.3 billion in orders for the bonds offered, said Nappier. Because of the oversubscription, the state was able to reduce interest rates on the bonds in the final pricing.
The final overall interest cost on the $700 million, 20-year new money bonds was 3.24%, she said.
Proceeds will fund transportation infrastructure improvements. Projects include work on the New Haven commuter rail line; the New Haven-Hartford-Springfield rail project; the I-84 Waterbury improvement program; and the I-95 New Haven harbor crossing corridor improvement project.
Moody's Investors Service affirmed the bonds at Aa3 while Fitch Ratings and Standard & Poor's rate them AA. All three assign stable outlooks.
Updike, Kelly & Spellacy and Lewis & Munday were co-bond counsel for the sale. RBC Capital Markets led the underwriting team. Squire Patton Boggs LLP and the Law Office of Joseph C. Reid PA were co-underwriters' counsel. Public Resources Advisory Group and A.C. Advisory Inc. were co-financial advisors.
The sale is scheduled to close Oct. 15.