Augusta, ME – State Treasurer Terry Hayes today announced that the state completed its general obligation bond pricing that will fund $114,675,000 of projects previously approved by Maine voters. The projects include major transportation infrastructure, stream crossings and culvert upgrades, land acquisitions, armory upgrades, and improvements at the Maine Community College system.
The online pricing competition received bids from eleven underwriters, all below the projected rate of 2.20%. The total borrowing costs for these bonds will be 1.54% over the ten year bonding period, a tribute to Maine’s AA rating.
“The administration, the legislature, and all of us can be proud of the state’s continually improving financial position. The number of bidders and the results demonstrate strong investor confidence in Maine’s bonds, even with the slight uncertainty stemming from new issue price rules that took effect today,” said Treasurer Hayes.
The state, along with its bond counsel Locke Lord and its financial advisor Hilltop Securities, accepted a bid from J.P. Morgan for one series of bonds and a bid from Morgan Stanley for the second series of bonds. The closing for these sales will take place later this month, with project funding occurring before the end of the fiscal year.