|
Treasurer Caprio Announces Sale of Tax Anticipation Notes
$350 million in notes to be repaid on June 30, 2011
PROVIDENCE- 7/8/2010 - Rhode Island General Treasurer Frank T. Caprio announced today that the State of Rhode Island issued $350 million in Tax Anticipation Notes (TANs). The notes are to be repaid in full by the end of the current budget year, as is required in the state constitution, which mandates a balanced budget.
The State of Rhode Island sold the $350 million in TANs at a rate of 0.5%. The notes will be repaid in full with interest by June 30, 2011.
Rhode Island received Standard & Poor's highest rating (SP 1+) for the short term notes.
"TANs are used to cover operating costs in the state budget through the fall and winter months, until the larger corporate and individual tax collections arrive in the spring," said Treasurer Caprio. "Yesterday's offering was well received by larger institutional buyers, which demonstrates the market's confidence in Rhode Island's financial management practices," Caprio said.
This year Rhode Island borrowed earlier than usual due to the availability of favorable interest rates. The lead underwriter for the sale was JP Morgan. Morgan Keegan and Oppenheimer also helped to underwrite the sale.
|
