Secretary of Finance Announces Successful Bond Sale

Finance Secretary Rick Geisenberger today announced that the State closed on the sale of $250 million in triple-A-rated general obligation bonds in last week’s bond sale. This was the second bond sale within four months.

“New federal tax policy eliminates the State’s ability to ‘advance’ refund its general obligation bonds for savings, so, in November, we took advantage of an opportunity to capture refunding savings of $4.7 million,” said Secretary Geisenberger. Last week’s sale of $250 million will fund capital projects including new schools in the Appoquinimink, Caesar Rodney and Laurel school districts, improvements to many other public schools as well as museums and the Port of Wilmington. These and many other capital projects are authorized by the General Assembly in the annual bond bill.

With triple-A ratings recently reaffirmed by Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s Rating Services, Delaware’s bonds were well received even in the recent volatile marketplace. The sale brought interest from a variety of investors, including bond funds, insurance companies, bank portfolios and separately managed accounts.


Delaware Holds Successful Bond Sale

Finance Secretary Rick Geisenberger announced today that Delaware successfully sold $225 million in triple-A-rated general obligation bonds in Thursday’s competitive bond sale.

Earlier this month, Delaware’s triple-A rating was re-affirmed by Moody’s Investors Service, Fitch Ratings, and Standard & Poor’s Rating Services. This rating is the highest mark that a state can achieve, and translates to reduced interest costs for Delaware. Today’s sale represented one of the lowest cost of funds in the last 15 years, pricing at very tight spreads to the prevailing AAA index – reflecting strong investor demand for the State’s bonds.

“The success of this week’s bond sale is a validation of the State’s long-term fiscal discipline and prudent financial management even during challenging budget environments,” said Secretary Geisenberger. “The resulting funds will enable us to continue to invest in vital capital projects and infrastructure improvements around the state.”

Some of the projects funded with the proceeds of the bonds include a new elementary school in the Laurel School District, renovations in the Red Clay, Lake Forest, Cape Henlopen, Smyrna, Caesar Rodney and Brandywine school districts as well as public library construction and renovations at Garfield Park, Lewes, Delmar, Selbyville, Harrington and Duck Creek.

Delaware’s true interest cost on this loan was 2.80%. The state received five bids; awarding Morgan Stanley &Co., LLC as the bidder offering the lowest cost of capital.