For immediate release:  July 13, 2004
For more information:  Barton Potter (360) 902-9033

State bond sales draw strong bidder interest

OLYMPIA Wash. — Washington state attracted a record-tying 13 bidders for one of four bond issues today in competitive offerings at the Office of the State Treasurer.

The high number of bidders for the Series 2005T issue matched a record for a single issue set in July 2002, State Treasurer Michael J. Murphy said

“Competition is healthy,” said Murphy, who chairs the State Finance Committee. “When we get 13 bidders for an issue, we know the product we’re offering is solid and we know we’ll get a competitive interest rate.”

Morgan Stanley was the winning bidder on $45.375 million of Series 2005T bonds with a true interest cost (TIC) bid of 3.7976058 percent. Series 2005T bonds are taxable general obligation (Housing Trust Fund) bonds, the proceeds of which support affordable construction or rehabilitation of housing units around the state through the state Office of Community Development.

Also bidding were Griffin, Kubik, Stephens and Thompson (3.8109643 percent), Goldman, Sachs & Co. (3.8123441), Legg Mason Wood Walker (3.8130715), Morgan Keegan and Co. (3.8205306), Lehman Brothers (3.8244577), BB&T Capital Markets (3.8366365), Raymond James & Associates (3.8464777), UBS Financial Services (3.8643096), Merrill Lynch (3.9024427), First Albany Capital (3.9812971), NBC Capital Markets (3.98559) and Wachovia Bank, National Association (4.0152876).

Lehman Brothers was the winning bidder for the fifth tranche of bonds ($65 million) for the Tacoma Narrows Bridge project (Series 2005C). Lehman offered a TIC bid of 5.1880518 percent. Also bidding were Citgroup Global Markets (5.2164781 percent), Morgan Stanley (5.2375713), Goldman, Sachs (5.2803419) and Merrill Lynch (5.3526575).

Morgan Stanley offered a winning TIC bid of 4.7224948 percent for Series 2005A, the largest issue of the day, $350.05 million in various purpose general obligation bonds. Proceeds fund capital construction costs for public agencies and higher education. Also bidding were Merrill Lynch (4.7485381 percent), Citigroup (4.7501168), Goldman, Sachs (4.7590484) and Lehman Brothers (4.7597766).

Merrill Lynch was the winning bidder for Series 2005B, $173.7 million in motor vehicle fuel tax bonds, with a TIC offer of 4.666792 percent. Also bidding was Goldman, Sachs (4.6885931 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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