BRADENTON, Fla. - Georgia secured financing rates as low as 1.21% on its multi-faceted $1.28 billion general obligation bond offering, state officials said.
The Georgia State Financing and Investment Commission approved the pricing structure for the deal at a June 10 meeting.
The state's triple-A ratings helped secure low interest rates on the competitive transaction, said Gov. Nathan Deal, chairman of the commission.
For the tax-exempt GOs, Georgia received a 1.21% rate for five-year bonds, 1.93% for 10-year bonds, and 3.08% for 20-year bonds. The blended rate was 2.98%.
A taxable GO series sold with rates of 1.68% for five-year bonds, 2.59% for 10-year bonds, and 3.77% for 20-year bonds. The taxable blended rate was 3.55%.
A $276 million tax-exempt refunding component sold to Citi at a true interest cost of 1.02%, saving the state $29 million in debt service costs.
The new-money bonds will provide $288 million for the University System of Georgia, $202 million for K-12 schools, and $93 million for projects in the Technical College System. Some $186 million will fund transportation and transit projects, while $35 million will fund the state's final payment for the Savannah Harbor deepening project.
The largest tax exempt tranche in the offering was $287.3 million maturing between 2026 and 2035. Those bonds sold to Citi at a dollar bid of $108.79 and a true interest cost of 3.38%. The deal priced to yield 2.45% with a 5% coupon in 2026, 3.25% with a 3% coupon in 2030, and 3.58% with a 3.5% coupon in 2035.
Goldman, Sachs & Co. won $273.2 million of tax-exempt bonds at a true interest cost of 1.81%, while $182.7 million of taxable GOs were sold at a true interest cost of 4.11% to First Union Capital Markets, a division of Wheat First Securities.
