State Treasurer Pellicciotti Holds Bond Sale to Finance $942 Million for Community and K-12 Projects
Washington State Treasurer Mike Pellicciotti approved the sale of a series of bonds today that will deliver upwards of $942 million in proceeds to be used to finance community infrastructure, K-12 school renewal and replacement projects, and other capital projects across the state.
Prior to the sale, Moody’s Investor Service, one of the Nation’s top credit rating agencies, reaffirmed its strong Aaa rating for the State of Washington, making Washington state bonds particularly attractive to investors. Moody’s first upgraded Washington to its highest possible rating of Aaa in August of 2019 and throughout the pandemic the Treasurer’s Office has successfully worked to maintain that top rating.
“We must keep investing in Washington and leading our state forward with a long-term outlook,” said State Treasurer Mike Pellicciotti. “Current and future Washingtonians in the decades ahead will benefit because we have been able to finance these important school and community projects at the lowest possible cost today.”
In addition to its Aaa rating from Moody’s, Fitch and Standard and Poor’s also reaffirmed their strong AA+ ratings for the state, which will help keep costs low for projects financed with proceeds of the bonds such as K-12 school renewal, construction of facilities for universities and colleges, and flood protection projects.
Various Purpose GO Bonds, Series 2022C
The $749,490,000 Various Purpose General Obligation bonds, Series 2022C are being issued to provide funds to pay and reimburse state expenditures for various capital projects. Due to its large size, the bonds were divided into three tranches, to be sold as more digestible “Bid Groups”.
- The state received 8 bids for the $199,125,000 sold as Bid Group 1 (maturities 2023-2032). BofA Securities submitted the best bid with a True Interest Cost (TIC) of 1.40%.
- The state received 7 bids for the $281,230,000 sold as Bid Group 2 (maturities 2033-2041). J.P. Morgan Securities LLC submitted the best bid with a TIC of 2.68%.
- The state received 7 bids for the $269,135,000 sold as Bid Group 2 (maturities 2042-2047). BofA Securities submitted the best bid with a TIC of 3.30%.
- On a combined basis, the $749,490,000 million Series 2022C bonds sold at an aggregate TIC of 2.84%. The final maturity date for Series 2022A is February 1, 2047.