The Certificates of Participation (COPs) sale tops $54M

PROVIDENCE 6/30/2009 - General Treasurer Frank Caprio announced today that the State of Rhode Island has successfully sold $54,610,000 in bonds to benefit several important projects in the State. Janney Montgomery Scott, LLC and Barclays Capital were lead underwriters on the sale.

"Technology, energy conservation and a much needed new building for the Rhode Island School for the Deaf will all benefit from this bond sale," said Treasurer Caprio. "As has been the case, both local retail and institutional buyers responded eagerly for the opportunity to invest in Rhode Island," Caprio said.

$12,380,000 of 2009 Series A bonds were sold. The sale of Series A benefits Information Technology (IT) upgrades to currently outdated systems, as well as IT projects designed to modernize technologies used in educational data collection, post secondary teacher training, and innovative elementary and secondary education.

Other IT projects will support the overhaul of the administrative infrastructure for the Judicial Department. The Series A Bonds ranged in yield from 1.230% in 2010 to 4.080% in 2016.

"The IT upgrades are necessary for government in Rhode Island to become more user-friendly and more cost effective for taxpayers," said Treasurer Caprio.

$11,805,000 of the Series B bond issuance were sold to benefit Energy Conservation Projects via "Energy Performance Contracts" (EPCs).

An EPC is a contract with an Energy Service Company (ESCO) to replace or upgrade energy equipment such as boilers, heating/air conditioning systems, lighting systems, etc. that are antiquated, inefficient and expensive to maintain. The Series B bonds will finance the execution of EPCs at the University of Rhode Island. The yields on the bonds ranged from 1.250% in 2010 to 4.800% in 2019.

"The resultant energy cost savings are then guaranteed under the terms of the EPC as sufficient to provide complete cost recovery on borrowing costs for the new equipment, " said Treasurer Caprio.

Finally, $30,425,000 in bonds were sold to benefit infrastructure improvements, specifically the construction of a new Rhode Island School for the Deaf in Providence. The 2009 Series C Certificates will finance the design, construction and equipping of the new school.

"The new school is needed due to the deteriorating condition of the existing facility. The new school will incorporate the latest advances in special-needs design, thus providing the entire student population with an educational environment ideally suited to their special requirements," said Treasurer Caprio.

The Series C bonds ranged in yield from 1.250% in 2010 to 5.660% payable in 2029.

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