DALLAS - Utah reported saving more than $16 million in interest because of a $220 million refunding in April.
The state sold two series competitively, including general obligation bonds and State Building Ownership Authority bonds. JP Morgan Securities won the bid on the GOs, while Wells Fargo Bank took the SBOA bonds.
"We closely monitor the state's debt for these refinancing opportunities, and once again we saw extremely strong demand in the market for our bonds, which rewards our taxpayers with extraordinarily low borrowing costs," said Utah Treasurer Richard Ellis.
In the April pricing of the refunding bonds, maturities of 2026 with 3.5% coupons drew yields of 2.26%, according to the Municipal Market Monitor.
Utah Gov. Gary Herbert noted that the state retained its triple-A ratings from the three major ratings agencies, a status it has held since 1965 with Standard & Poor's, 1973 with Moody's Investors Service, and 1992 with Fitch Ratings.
"Strong bond ratings provide external validation that we manage our state budget wisely and help us borrow at the best rates available when we need to finance large projects," said Gov. Herbert. "We are very protective of these ratings - something that many states have not been able to do."
