Oregon issued $566.6 million in bonds to finance various capital improvement projects.
The state sold $266.7 million in tax-exempt bonds and $299.9 million in taxable bonds. The tax-exempt securities mature between 2025 and 2044, yielding between 2.92% and 3.75%. The taxable bonds mature between 2025 and 2042, yielding between 4.862% and 5.494%.
The securities received a rating of AA+ from Fitch Ratings, Aa1 from Moody’s Investors Service, and AA+ from S&P Global Ratings. Fitch revised Oregon’s outlook to positive from stable.
The rating reflects Oregon’s “strong control over revenues and spending, low liabilities and record of prompt actions to maintain financial flexibility during challenging revenue periods,” Fitch analysts wrote. They added that their outlook revision reflects their view that “Oregon appears on track to achieve and sustain material increases in gap-closing capacity.”
The state will use more than half of the bond proceeds to fund a state program that aims to develop and improve affordable housing. The bonds will also support capital improvement projects including seismic retrofitting and rehabilitation for several state buildings, including schools.
State Treasurer Tobias Read said in a statement that the bonds would create “profound long-term benefits” for Oregonians.
The bonds are general obligations of the state of Oregon, backed by its full faith and credit.
Morgan Stanley & Co LLC served as lead underwriter on the issuance, which includes denominations of $1,000 rather than the standard $5,000. PFM Financial Advisors LLC acted as municipal advisor.