Comptroller Justin P. Wilson announced today the state has completed the sale of about $190 million worth of general obligation bonds at what it calls "some of the lowest interest rates in Tennessee history."
The debt offering was sold in two series, consisting of Series A for $111,065,000 in tax-exempt bonds and Series B for $79,160,000 of tax-exempt refunding bonds, according to a release. The combined true interest cost of the bonds is 2.99 percent.
The bonds will be used to fund new capital projects and refinance currently outstanding bonds. The refinanced bonds will save Tennessee taxpayers $6.9 million spanning a 16-year period, Wilson (pictured) said.
For the sale, Wilson said Tennessee received AAA credit ratings from Fitch Ratings and Moody’s Investor Service, and an AA-plus rating from Standard & Poor’s.
“This is one of the most successful bond sales in state history,” Wilson said in the release. “Our state legislators and administration should take credit for financial management that eases the burden on future generations of Tennesseans.”
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