For immediate release:  February 3, 2004
For more information:  Barton Potter (360) 902-9033

State hits 35-year interest rate lows in Tuesday bond sales

OLYMPIA Wash. — Washington state attracted modern-day record-low interest rates for two of three bond issues in competitive bidding today at the Office of the State Treasurer.

The bidding yielded 35-year lows (for issues of comparable length, credit and structure) in true interest cost (TIC) for a $417 million various-purpose offering and a $58.8 million motor vehicle fuel tax issue, Treasurer Michael J. Murphy said.

The interest-rate offeredfor $90 million in Tacoma Narrows Bridge bonds was also excellent, Murphy said.

“We’re always confident Washington bonds are well-regarded in the marketplace, and we have to be particularly delighted with the numbers on these issues,” said Murphy.

Merrill Lynch & Co.was the winning bidder on two issues. Its TIC bid of 4.4431298 narrowly edged out J. P. Morgan Securities Inc. (4.4437894 percent) to purchase $417.4 million in various purpose general obligation bonds (Series 2004D). Proceeds will be used for construction projects around the state, including state buildings, higher education, outdoor recreation, habitat conservation, the Gardner-Evans Higher Education Construction Account and the Capitol Historic District. Also bidding were Citigroup Global Markets (4.4494804 percent) and Goldman, Sachs & Co. (4.4580276 percent).

Merrill Lynch offered a winning TIC bid of 4.4089116 percent for $58.8 million in motor vehicle fuel tax general obligation bonds (Series 2004E), the proceeds of which will be used for highway and transportation improvement projects around the state. Also bidding were Citigroup (4.4556693 percent), J.P. Morgan (4.4708729 percent) and Goldman, Sachs (4.4727819 percent).

Goldman, Sachs was the winning bidder for the fourth tranche of bonds for the Narrows Bridge project (Series 2004F). Goldman, Sachs offered a (TIC) bid of 4.88949 percent. Also bidding were Merrill Lynch & Co. (4.890938) and J.P. Morgan (4.893048 percent).

Treasurer Murphy chairs the State Finance Committee, which met following the bidding to award the sales. The committee’s other members are Gov. Gary Locke and Lt. Governor Brad Owen.

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