Municipal Bond Market Favors Washington in Bond Sale
On Tuesday, the Washington State Treasurer’s Office sold $105 million dollars of refunding bonds to refinance $113 million of prior issued debt. The refinancing resulted in over $11 million dollars in debt service savings for the state.
Treasurer Duane Davidson applauded the sale as a success. “The COVID-19 pandemic has put many state resources in a pinch. I am proud of my office for completing this refinancing to provide much needed financial relief to the state.”
The Treasurer’s Office conducted this refunding through a competitive sale, receiving 10 bids in total. J.P. Morgan Securities LLC submitted the winning bid with a true interest cost of 0.2824%. “Today was a very busy day in the municipal bond market,” said Deputy Treasurer Jason Richter. “The fact that we received 10 bids speaks to the positive reputation the state has with investors. This was a strong showing and we are very pleased with the results.”
This refinancing, which relates to capital projects like schools, hospitals, and construction for higher education, will save the state $11 million, or 9.69% in present value debt service savings, and will reduce annual debt service payments by an average $2.2 million from fiscal year 2021 through 2025. In the last 4 years, the Treasurer’s Office has saved the state approximately $470 million by refinancing debt.