Treasurer Loftis saves SC $24 million dollars from bond refinance
Thursday, February 10, 2011
(Columbia, SC) – Today State Treasurer Curtis Loftis is announcing the state has reached agreement to refinance more than $340 million dollars in taxpayer funded general obligation debt and $20.8 million of the University of South Carolina’s state-institution debt. The combined refinancing will save the state nearly $24 million dollars.
Both winning bids were submitted by J. P. Morgan Securities, LLC. The true interest cost of the state general obligation bonds is 1.707% and 2.861% for the University state-institution bonds.
“I am proud of my team for looking at all possible ways to save precious taxpayer dollars,” Treasurer Loftis said. “It is important that we stay with a sound and conservative investment strategy that best protects state money. Any day we can let the citizens know we’re saving state money is a good day.”
Today, the Treasurer’s Office will also be obtaining bids for four state institution bonds which total $126 million dollars worth of projects at Clemson, MUSC, Midlands Tech and USC facilities across the state.
This week the state received the highest possible AAA bond rating from rating services Moody’s and Fitch Services. Standard & Poor’s gave the state an AA Plus (AA+) rating.
While praising the conservative and sound investment approach, the firms cautioned the state’s underfunded pension plans, high unemployment rates and growing Medicaid costs as signs that adding more debt could create future credit challenges.
Treasurer Loftis and his team vow to continue to take a sound and cautious investment approach while looking for any and all ways to continue to save taxpayer dollars.