SAN FRANCISCO - Washington sold nearly $1.2 billion of general obligation bonds to fund education projects and refinance over $880 million of outstanding bonds.
State Treasurer James McIntire said the state saw "tremendous savings" from the refunding portion.
"I am very pleased with the excellent results of today's bond sales," McIntire said in a statement on June 25. "These results demonstrate strong investor confidence in Washington State's economic recovery and finances and they ensure the best possible deal for taxpayers."
In addition to the refunding portion, the deal included $228 million of various purpose general obligation bonds. More than $22 million of this was sold in a negotiated retail sale on June 23, which gave priority to Washington residents.
Bank of America Merrill Lynch was underwriter for the retail orders. The treasurer's office said all qualified orders placed by residents were filled.
Most of the deal was sold in four series of competitive offerings June 26.
BofAML was the successful bidder for the refunding series of $419 million of various purpose GO bonds, with a true interest cost of 2.37% and an average maturity of 8.1 years.
Citi won the $420 million of motor vehicle fuel tax GO refunding bonds, with a TIC of 2.35% and an average maturity of 7.9 years.
For the $207 million of new money GO bonds, BofAML beat out five other bidders at a TIC of 3.87% and an average maturity of 19.2 years.
JPMorgan was the lowest of nine bidders for the $86 million of taxable bonds, with a TIC of 2.56% and an average maturity of 6.3 years.
Proceeds of the new money bonds will go toward investments in K-12 schools, community colleges, and universities. Projects include construction of new elementary, middle, and high schools in the state, as well as new buildings for Central Washington University and Washington State University.
Washington is rated Aa1 by Moody's Investors Service, and AA-plus by both Standard & Poor's and Fitch Ratings, all with stable outlooks.
