Triple-A rated North Carolina saved $45.3 million in debt service costs on its $319.26 million general obligation refunding last week, state Treasurer Janet Cowell said.
The bonds were originally issued in 2003 through 2007 to pay for transportation, university and community college projects.
The refunding bonds, maturing from 2013 to 2025, were sold competitively and awarded to Citi, which submitted a bid of 1.84%, the most favorable of the eight received.
“The current market allowed us to take advantage of low financing costs to save money for North Carolina taxpayers,” Cowell said. “The savings generated by the sale of these bonds helps us reduce our debt service costs and reinforces our triple-A bond rating.”
The bonds sold with interest rates of 0.24% and a 4% coupon in 2014, 1.08% with a 5% coupon in 2018, and 2.03% with a 5% coupon in 2025.
Davenport & Co. was the state’s financial advisor. Parker Poe Adams & Bernstein LLP and the Banks Law Firm PA were co-bond counsel.