Washington’s treasurer said the state garnered $83 million in present-value savings from its Wednesday sale of general obligation refunding bonds, more than 50% larger than any previous refinancing.
The state sold $786 million of GO bonds — $398 million in various-purpose GOs and $388 million in motor vehicle fuel-tax GOs — in a deal that grew nearly a quarter in response to market hunger.
“At a time of mounting budget pressures, this action saves nearly $15 million for this biennium and the next,” state Treasurer James McIntire said in a statement Wednesday.
He said the refunding produced overall savings of 9.9% and each sale drew eight firms to the competitive bidding.
Wells Fargo Bank NA submitted the lowest bid for the $401 million of various-purpose refunding GOs at a true interest cost of 3.03%. Bank of America Merrill Lynch bought the $394 million fuel-tax refunding GOs at a TIC of 2.87%. The bonds are rated double-A plus.
McIntire said the treasurer’s office had saved taxpayers more than $730 million from refundings since he took office in 2009.