Wall Street Still Loves Michigan As State Sells Bonds
While the Michigan economy is humming along on all cylinders, it certainly is getting some love from Wall Street. State Treasurer Rachael Eubanks announced Thursday that the state of Michigan successfully sold more than $235 million in 2019 revenue and refunding State Building Authority bonds.
The sale came with strong investor interest as more than 85 investors put in orders for bonds. Exceptionally high demand resulted in a lower interest rate on the bonds (all-in true interest costs of 3.19%) maturing in 2054, with several new investors purchasing the bonds. The bonds are being issued to refund the outstanding 2009 I and II series bonds, which will result in over $11 million in annual lease cancellation savings for the state through 2032. In addition, the bonds will refund outstanding commercial paper supporting capital outlay projects and fund the completion of some of those projects. - Michigan Department of Treasury
A glowing release from the Michigan Treasury Department quoted Eubanks as saying, “this was a tremendously great day for the state of Michigan. The strong demand for Michigan bonds shows that investors are willing to put their dollars behind our state. The credit ratings agencies also displayed confidence in Michigan’s economic and financial health by affirming their credit ratings.”