SAN FRANCISCO - Oregon sold $590 million of tax anticipation notes June 17 for cash management purposes during fiscal year 2015 of its 2015 budget biennium.
The state annually issues TANs in order to manage a structural misalignment between its cash inflows and outflows.
The bonds, which mature in June 2015, priced at 0.12% with a 2% coupon.
Citi was the lead underwriter.
The bonds received top short-term ratings from all three credit rating agencies, which cited the state's full faith and credit pledge to the payment of the notes.
Oregon is rated Aa1, AA-plus, and AA-plus by Moody's Investors Service, Standard & Poor's, and Fitch Ratings, respectively.
The short-term notes received MIG-1, SP-1+, and F1+ ratings from the three agencies.
Analysts also cited the state's satisfactory cash balances projected at the end of the biennium and the strong liquidity afforded by substantial resources available from other state funds.
The issuance was slightly smaller than borrowing for fiscal 2014, when the state issued $650 million of TANs. At $590 million, the notes represent around 7% of fiscal 2015 forecast cash flows.
