$24 Million COPs Sold For Washington Government Projects
OLYMPIA, WA – Washington’s Office of the State Treasurer (OST) successfully sold almost $24 million in Certificates of Participation (COPs) on September 12th. The offering attracted 12 different bidders with Morgan Stanley & Co, LLC (Morgan Stanley) offering the lowest bid.
The COPs will help finance equipment needed by 18 local governments across Washington. Morgan Stanley bought $23,890,000 Series 2017B COPs, bidding 1.396718% on the certificates, this was .028899 less than the second lowest bidder – Janney Montgomery Scott LLC. After resizing, the total cost of financing the Series 2017B COPs will be $24,180,000. The COPs will reach final maturity on July 1st, 2027. The sale’s closing will be finalized on September 28th.
These COPs will be used to finance many different local projects. For example in Kittitas County the Cle Elum-Roslyn School District will purchase three more school buses with their COP proceeds.
“As a former Benton County Treasurer I’m well aware how COP financing can save local governments money”
Washington Treasurer Duane Davidson remarked, “As a former Benton County Treasurer I’m well aware how COP financing can save local governments money. The Treasurer’s Office COP program can be a great option to get low cost financing for local capital projects. We want more local governments to consider this as they review their capital financing options.”
COPs are certificates issued by OST as a way for school districts, fire districts, cities and other local municipalities to finance equipment and real estate at a low rate. The state issues the certificates using the state’s credit rating, and the local groups who want to finance their equipment make the repayment. By using the financing power of OST, local districts get a fixed low cost rate, likely considerably lower than what they would pay if they were financing this equipment or real estate on their own.
For further information contact: Anthony Hemstad, Senior Advisor Anthony.hemstad@tre.wa.gov, (360) 902.9036 or Leo Marquez, Outreach Coordinator Leo.marquez@tre.wa.gov (360) 902.9034
