Connecticut completed $881 million in general obligation in bond transactions in May, including a $181 million refinancing that closed this week, state Treasurer Denise Nappier announced.
The state also completed sales of $500 million of fixed-rate general obligation bonds and $200 million of SIFMA-index GO bonds, both of which will fund new projects. The latter are tied to Securities Industry and Financial Markets Association indexes.
According to Nappier, the bond sales were designed to appeal to both individual and institutional investors.
Siebert Brandford Shank led the underwriting syndicate in the $500 million transaction on May 12 with an overall fixed interest cost of 3.55%. Loop Capital Markets led the $381 million sale on May 20, which included $200 million to fund new projects as well as the $181 million refunding.
All four bond rating agencies affirmed Connecticut's ratings. Moody's Investors Service rates Connecticut GOs Aa3, while Standard & Poor's, Fitch Ratings and Kroll Bond Rating Agency all assign AA ratings.
Law firms Day Pitney LLP and Finn Dixon & Herling LLP were disclosure counsel with Robinson & Cole LLP and Soeder & Associates LLC as tax counsel. Acacia Financial Group Inc. and A.C. Advisory are the financial advisors for general obligation bond sales, which are scheduled to close on May 28.
Nappier said total savings from refinancings throughout her tenure, which began in 1999, exceeds $1 billion. Her office has refinanced or defeased $11.9 billion in bonds through 72 financing transactions during that time.
Connecticut typically issues bonds with 20-year maturities, with provisions allowing it to pay them off after 10 years at no cost.
