The state’s $600 million transportation bond offering brought to market Tuesday by J.P Morgan sold out in just a day as the recent rating downgrade by Moody’s did not scare investors off the deal.
Yields for the deal, which was scheduled to be priced over two days, ranged from 1.51% for a 2013 maturity to 5.47% for a 30-year bond, a drop of as much as 30 basis points off the expected yield.
“Demand was overwhelming, allowing the state and its banks to sell all our bonds in one day rather than the two days usually required for a sale to retail and institutional investors. In addition, state bonds were sold at yields far better than their underlying ratings, which is extremely good news for taxpayers,” state Treasurer Andrew Sidamon-Eristoff said.
The lower yields will save the state as much as $20 million on its debt service over the 30-year life of the longest maturities, Sidamon-Eristoff said.
The issue is rated A-plus by Standard & Poor’s, and AA-minus by Fitch and A1 by Moody’s Investors Service.