Wisconsin sold $207.6 million in bonds to refund previously issued securities.
The bonds mature between 2025 and 2037, yielding between 2.55% and 2.99%. They pay interest at 5%. The securities received a rating of AA+ from Fitch Ratings, AAA from Kroll Bond Rating Agency, and AAA from S&P Global Ratings.
The rating “reflects the exceptional resilience of the security through economic declines and relatively flat growth prospects for motor vehicle registrations in the state,” Fitch analysts wrote.
The bonds are revenue obligations of the state of Wisconsin, payable by a lien on vehicle registration and related fees. The state estimates that it will collect $924 million in those fees this fiscal year, compared to total debt service obligations of $201 million, according to the official statement accompanying the sale of the bonds. “Revenues provide ample coverage of debt service, and the state has a track record of raising and expanding revenues as necessary,” according to Fitch.
The issuance is intended to achieve debt service savings for the state. Wisconsin sold an additional $489.8 million in transportation revenue bonds last month.
Wells Fargo Securities, LLC served as lead underwriter on the issuance, purchasing the bonds for $232.2 million. The price reflected a premium of $25.6 million and a discount of $1 million. Baker Tilly Municipal Advisors, LLC acted as financial advisor.