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Washington County closes $150 million MIStep bond sale; debt service and terms disclosed
Summary
County staff reported July 22 that bond sale proceeds of $150 million closed July 17 to fund MIStep bonds; award details, interest and debt-service estimates were provided to the board.
A county staff member reported the successful sale of MIStep bonds earlier this month and presented preliminary debt-service figures to the board on July 22.
The staff update said the issuance size was $150,000,000 and that eight bids were received; the bonds were awarded to Morgan Stanley for $136,900,000 with a premium of $13,700,000. The staff member told the board the annual debt service will be about $12,000,000 over 17 years and the total interest over the life of the bonds is approximately $68,300,000. The stated true interest cost on the sale was 3.77 percent, and the sale closed on July 17.
The staff member noted the county’s AAA credit rating as a factor supporting strong market interest and lower borrowing costs. There was no formal action requested of the board at the meeting; the report was an informational update.
