February 19, 1998
The state's Board of Public Works yesterday sold $250 million in bonds with the lowest interest rate Maryland has paid on general obligation debt in 27 years.
The 15-year bonds, rated triple-A by all three major rating agencies, carry a 4.4297 interest rate.
The state intends to use the proceeds of the bonds to fund construction projects; higher education facilities; water quality and Chesapeake Bay projects; jails in Baltimore, Howard, Allegany and St. Mary's counties; and cultural and museum projects throughout the state.
A syndicate led by PaineWebber topped three other offers to sell the bonds.
Maryland is one of only eight states to retain a triple-A rating -- the highest used by Moody's Investors Service Inc., Standard & Poor's Corp. and Fitch Investors Service, the three major rating agencies.
The state says it has saved $142 million in interest costs because of the triple-A rating since 1971, compared with the costs associated with a double-A rating.
Maryland last sold general obligation bonds in July 1997, when $250 million was raised by selling bonds with a 4.639 percent interest rate.
Pub Date: 2/19/98
