Florida’s Cabinet approved the sale of about $400 million of new and refunding bonds on Tuesday.

Three competitive sales will be brought to market by the Division of Bond Finance, the largest of which is the $310 million of full-faith-and-credit refunding bonds for the Department of Transportation’s right-of-way acquisition and bridge construction program. The bonds are secured primarily from motor fuel and diesel fuel taxes.

The division also plans to sell $16.5 million of Florida State University parking facility revenue bonds and $8.5 million of refunding bonds secured by parking system revenue and a mandatory transportation access fee charged to all students. Proceeds will finance the construction of a parking facility on the Tallahassee campus.

Another $17.3 million of student health fee revenue bonds will be sold so the University of North Florida can build a wellness center consisting primarily of fitness facilities and equipment.

The Cabinet also approved the Florida Housing Finance Corp.’s request to sell up to $47.5 million of multifamily mortgage revenue bonds for three projects.

Division of Bond Finance director Ben Watkins also reported on the outcome of recent bond sales.

Watkins said the state received a true interest cost of 2.34% on a $223.4 million State Board of Education lottery revenue refunding deal competitively sold on Sept. 9. The deal was done within the existing 10-year maturity of the refunded bonds and resulted in annual debt service savings of $3.4 million and present-value savings of $30.4 million, or 12.4%, according to Watkins.

The Oct. 7 competitive sale of $167.2 million of new Board of Education capital outlay bonds resulted in a true interest cost of 4.03%. The 30-year bonds were sold to finance capital projects at schools and community college districts.

Both bond deals were awarded to Bank of America Merrill Lynch as the low bidder.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.