State Treasurer Nick Khouri Tuesday announced that the state of Michigan successfully sold nearly $120 million in General Obligation Environmental Program bonds.
The sale came with strong investor interest as 16 underwriters submitted competitive bids to purchase $79 million in tax-exempt bonds and 14 underwriters submitted competitive bids to purchase more than $40.5 million in federally taxable bonds.
For the tax-exempt maturities ranging from 2022 to 2027, Goldman Sachs & Co. LLC was the winning underwriter with a 1.70 percent true interest cost bid. For the federally taxable securities ranging from 2020 to 2025, Fifth Third Securities Inc. was the winning underwriter with a 2.11 percent true interest cost bid.
“I am pleased with the results of this sale,” Khouri said. “The state of Michigan has worked hard to improve its finances and economy, demonstrating to the marketplace that our state is a sound investment. Today’s transaction provides resources to help better the quality of life of our residents.”
Bond proceeds primarily support water infrastructure, asset management plans, and water quality monitoring in communities across the state.
“Modern and reliable infrastructure continues to be a top priority for Michigan,” said C. Heidi Grether, director of the Michigan Department of Environmental Quality. “These funds have allowed us to invest in our future by helping communities make necessary updates and repairs to aging water and sewer systems.”
Prior to the bond sale, S&P, Moody’s and Fitch conducted a thorough review of the state’s economy and finances to determine a credit rating. The state received an Aa1 rating with a “stable outlook” from Moody’s, an AA rating with a “stable outlook” from Fitch and an AA- rating with an improved “positive outlook” from Standard and Poor’s.
These ratings enable the state to borrow money at a low interest rate, which translates to taxpayer savings and reflects improvements in the state’s economy and fiscal condition since the recession.
Dykema Gossett PLLC served as bond counsel, with Robert W. Baird as financial advisor on the sale.
- Posted September 14, 2017
- Tweet This | Share on Facebook
Strong investor interest as state successfully sells bonds
headlines Oakland County
- Meet the Judges
- Phishing and Smishing and Skimming and Shimming: Nessel encourages public to watch out for common scams during NFL Draft
- 56 years later, bias case is closed: Hamtramck completes new housing
- Attorneys to explain new U.S. DOL rules
- Michigan employers, local partners spotlight Gov. Whitmer’s budget recommendations and benefits for Going PRO Talent Fund
headlines National
- New Legalese: You may have heard a deepfake, but what about ‘Twiqbal’?
- From Intake to Outcome: An in-house lawyer’s guide to matter management solutions
- 2 BigLaw firms in merger talks that could produce 1,600-lawyer firm with top 50 revenue
- Send in the paralegals
- Lawyer reprimanded after mistakenly emailing opposing counsel with plan to avoid judge’s call
- ‘I don’t play well’ judge who threatened to track down, jail misbehaving litigant gets tossed from case