PROVIDENCE, R.I. – Governor Lincoln D. Chafee and General Treasurer Gina M. Raimondo today announced Rhode Island's General Obligation Bond sale this week was a success. This $78.7 million refinancing of approximately $84 million existing debt will save the state $6.7 million over the life of the issue, which matures in 2025.
These bonds, sold at an interest cost of 2.22 percent as compared to 4.7 percent on the prior bonds, were issued in 2005, 2006 and 2007 to fund various projects statewide.
"I am pleased that the State has been able to execute this refinancing," Governor Chafee said. "This is just another step in creating a climate of certainty to give businesses confidence in Rhode Island."
"With this bond offering, Rhode Island taxpayers experienced solid savings," Treasurer Raimondo said. "This successful financing allows us to continue to move towards investing in our future to improve our state's roads, bridges and higher education facilities."
The transaction was 3 to 4 times oversubscribed in most maturities, enabling yields to be lowered during re-pricing by 4 to 7 basis points in some maturities. There were almost 200 orders and upwards of 20 institutional investors participated in the transaction.
Rhode Island's ratings were re-confirmed for this recent offering at: Moody's Aa2, Standard & Poor's AA and Fitch AA.