For immediate release:  July 23, 2002
For more information:  Barton Potter (360) 902-9033

State bond sale attracts record bidders, low rates

OLYMPIA, Wash.—Unusually high bidder interest in the sale today by the state of Washington of $184 million in bonds reflects continuing market confidence in municipal bonds and the state’s fiscal health, State Treasurer Michael J. Murphy said.

Thirteen bidders, a record number since the state began accepting bond bids electronically, stepped forward for the sale of $24.8 million in taxable State Housing Trust Fund bonds (Series 2003T). The State Finance Committee awarded the bid to UBS Paine Webber with a true interest cost (TIC) bid of 3.7488436 percent.

“The short-term (six-year) nature of the housing bonds helped attract a broader bidding audience, Murphy said.

Merrill Lynch was the successful bidder among four firms competing in a separate sale of $159.6 million in tax-exempt state construction bonds (Series 2003A). Merrill Lynch offered a TIC bid of 4.8153738 percent

“These are great rates, and the competition was more than healthy on both these issues,” said Murphy, who chairs the State Finance Committee. “We know the stock market is struggling right now, but munis are rock-solid. We believe a sale like this is a vote of confidence that Washington’s economy is moving in the right direction.”

Proceeds of the Housing Trust Fund bond sale help provide safe, affordable housing in communities throughout Washington. The fund supports construction or rehabilitation of more than 3,000 housing units each biennium.

Competitors in the housing bond sale included US Bancorp (3.77636 percent TIC), J.P. Morgan (3.7850831), First Albany (3.8302476), Griffin, Kubik (3.8369836), Wachovia (3.8491003), Salomon (3.8716927), Dain Rauscher (3.8720009), Morgan Stanley (3.8760307), Raymond James (3.8932629), NBC Capital (3.9051117), Morgan Keegan (3.9196138) and Wells Fargo (3.9959963).

Also competing in the construction bond issue, proceeds of which will be used for capital construction projects throughout the state, were Salomon (4.8377844 percent TIC), Morgan Stanley (4.8657861) and UBS Paine Webber (4.8496967).

Treasurer Murphy is chairman of the State Finance Committee and serves on the committee along with Gov. Gary Locke and Lt. Gov. Brad Owen.

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