For immediate release:  July 22, 2003
For more information:  Barton Potter (360) 902-9033

State sells third set of Narrows Bridge bonds

OLYMPIA—The third tranche of bonds for the new Tacoma Narrows Bridge was sold today in the Office of the State Treasurer.

“The bridge issue and two other issues attracted strong bidder interest, just days after two rating agencies affirmed the state of Washington’s solid bond ratings.

“I’m delighted we had such interest in these bonds, particularly in a difficult market,” said State Treasurer Michael J. Murphy, chairman of the State Finance Committee. The committee met after completion of the bidding to approve the bridge bond sale and the two other issues.

Lehman Brothers was the winning bidder for $110 million in motor vehicle fuel tax general obligation bonds (Series 2004C) for the Narrows Bridge project. Lehman offered a true interest cost (TIC) bid of 5.3788822 percent. Also bidding were Salomon Smith Barney Inc. (5.4848062 percent) and Merrill Lynch & Co. (5.5537386 percent).

“Lehman Brothers was also the winning bidder on each of the other two issues.

Lehman’s TIC bid of 4.650095 purchased $271.4 million in various purpose general obligation bonds (Series 2004A), the proceeds of which will be used for construction projects around the state, including state buildings, higher education, outdoor recreation, habitat conservation and the Capitol Historic District. Also bidding were Merrill Lynch (4.6661393 percent TIC), Bear, Stearns & Co. Inc. (4.704562 percent) and Salomon Smith Barney (4.7205857 percent).

Lehman offered a winning TIC bid of 4.646609 percent for $200 million in motor vehicle fuel tax general obligation bonds (Series 2004B), the proceeds of which will be used for highway and transportation improvement projects around the state. Also bidding were Merrill Lynch (4.655459 percent) Salomon Smith Barney (4.664903) percent) and Bear, Stearns (4.7425544 percent).

Late last week, Standard and Poor’s affirmed the state’s AA+ bond rating, and Moody’s Rating Service affirmed its Aa1 rating.

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