The Nevada Treasurer’s Office completed a $70 million highway revenue refunding bond sale that will result in savings of about $6 million in its existing debt service payments, deputy chief debt manager Lori Chatwood said in a news release.
The refunding will retire bonds previously issued by the state and replace them with bonds at a lower interest cost.
According to the release, the interest cost on the refunding bonds, which had a maximum maturity of seven and a half years, was 1.40%.
There was widespread demand for the bonds, which were sold competitively, as the state received bids from 13 different investment banks, according to Chatwood.
The sale was conducted on behalf of the Nevada Department of Transportation.
The winning bidder was Bank of America Merrill Lynch.
Financial advisors were JNA Consulting Group, LLC and Montague DeRose and Associates LLC.
“This recent savings is yet another example of my office’s successful marketing and investor outreach program,” said state Treasurer Kate Marshall. “We have ramped up our efforts to reach a wider variety of investors, resulting in a greater demand for Nevada’s bonds, which ultimately benefits Nevada taxpayers.”
In the last six months, Marshall said, the state has taken advantage of the low interest-rate environment of the financial markets to refund $300 million of existing state bonds. The refundings produced approximately $21 million in savings for taxpayers, according to the release.
“Nevada’s continued good credit rating of double-A during these challenging economic times has saved the state and its taxpayers millions of dollars in borrowing costs,” Marshall said.