State obliges bondvivants
Minnesota Management and Budget Commissioner Tom Hanson announced today (Aug. 11) the sale of four separate series of bonds totaling about $598 million.
“Today’s sale was an unqualified success,” Hanson said in a press release. “The large number of bidders and excellent rates are a reflection of improved financial markets and our reaffirmed excellent credit rating.”
About $192 million in general obligation bonds were sold to Barclays Capital at a “true” interest rate of 3.40 percent.
The bond revenue will pay for capital projects throughout the state.
Additionally, $80 million in general obligation trunk highway bonds were sold to Merrill Lynch at a slightly higher interest rate.
Two other bonds series of outstanding bonds were sold to make use of lower interest rates — Merrill Lynch purchased the largest series, buying some $298 million of general obligation bonds at a true interest rate of 2.52 percent.
Refinancing will save the state about $30 million, according to the department.
Hanson noted that the state planned to sell about $460 million in general obligation bonds for various purposes in October.
