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Washington Bond Refinancing Yields Savings of $31.4 million

Contact: Chris McGann 360-902-9033

October 10, 2013 - Thursday’s issuance of $228.1 million bonds to refinance outstanding various purpose and motor vehicle fuel tax general obligation bonds will save Washington more than $31.4 million in debt service costs on a present value basis.

Savings of nearly $8.3 million from this refunding will be realized in the operating and transportation budgets in the current biennium.

State Treasurer James McIntire said the savings demonstrate the commitment to reducing costs for taxpayers.

"We manage our debt portfolio in manner that allows us to take advantage of favorable market conditions and substantially lower borrowing costs," McIntire said. "Taxpayers should expect nothing less."

The refinanced bonds were originally issued in 2003 and 2004 to finance state construction and highway projects.

J.P. Morgan Securities had the lowest of eight bids in both sales with a True Interest Cost (TIC) of 1.37 percent for the $120.2 million Various Purpose General Obligation Refunding Bonds, Series R-2014A, and a TIC of 1.43 percent for the $107.9 million Motor Vehicle Fuel Tax General Obligation Refunding Bonds, Series 2014B.

Treasurer McIntire’s debt management team has reduced debt service costs by $1.7 billion on a present value basis since 2009.

For more information visit the Office of the State Treasurer’s website at www.tre.wa.gov