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State Gets Low Rates For Transportation Bonds

State Gets Low Rates For Transportation Bonds

(Story updated May 25, 2017). The State of Washington successfully issued two series of general obligation bonds in competitive sales today, September 7, 2016. Proceeds will be used for transportation infrastructure projects statewide, including the SR 520 Corridor.

A new cross-lake corridor project is being finished there, including a 7,708-foot floating bridge completed in April, 2016.

It replaces a 1963-vintage floating bridge that was determined to be too vulnerable to high windstorms and earthquakes.

Six Bids Received

The Office of the State Treasurer received six bids for $134.4 million motor vehicle fuel tax general obligation bonds and $90.1 million “triple pledge” motor vehicle fuel tax general obligation bonds (SR 520 Corridor – Toll Revenue) achieving a true interest cost (“TIC”) of 2.9969% and 3.0056%, respectively.

For each series, Citigroup was the successful bidder and Bank of America Merrill Lynch provided the cover bid.

This is the second time the State has issued triple pledge bonds for the SR 520 Corridor.

Triple Pledge Bonds

Triple pledge bonds are first paid from toll revenues collected on the SR 520 floating bridge across Lake Washington and additionally pledge motor vehicle fuel tax revenues as well as the full faith and credit of the State.

A project summary by the Washington State Department of Transportation details the work phases of the project. While the new floating bridge has already opened, the I-5 to Lake Washington and so called “West Approach Bridge North Project” remain. About the bridge itself, the WSDOT project summary states:

Includes Wide Path For Bicyclists, Joggers, Bikers

“We replaced the world’s longest floating bridge – a four-lane structure built more than a half century ago – with an even longer, safer, six-lane bridge designed to withstand strong windstorms and waves. The new bridge, which opened April 2016, also has shoulders for disabled vehicles and a separate, 14-foot-wide path for bicyclists, walkers and joggers.”

Here’s an informational video about the bridge, from WSDOT, including drone footage.

More information: Office of the State Treasurer’s For Investors page.