State Treasurer David McRae issued the following statement.
Governor
Tate Reeves and State Treasurer David McRae today announced a debt
refinancing deal that will save taxpayers $36 million. The savings will
be used to reduce debt service payments in upcoming fiscal years.
“Mississippi
taxpayers deserve watchdogs to look after their finances. Careful
stewardship is essential,” said Governor Reeves. “I want to thank
Treasurer McRae for his excellent work on this, and let the people of
Mississippi know that we will always look out for their best interests.”
“We
have a responsibility to do more with every taxpayer dollar spent,”
said Treasurer McRae. “By preserving our credit ratings - especially
during the COVID-19 pandemic - and responsibly managing our finances,
the State of Mississippi has been able to earn the faith of creditors to
the benefit of taxpayers. I am grateful to Governor Reeves and our
teams who worked diligently to bring this deal across the finish line.”
The
State of Mississippi closed on the $504,225,000 General Obligation
Refunding Bonds, Series 2020A, deal and the $37,390,000 General
Obligation Refunding Bonds, Series 2020B deal this August. The combined
financing allowed the State to restructure its variable rate portfolio
into long-term, fixed-rate debt in addition to refunding maturities from
previously issued bonds. The Net Present Value Savings for the
refunding presented the State with $36 million in savings that will be
used to reduce debt service payments in upcoming fiscal years. A low
interest rate environment, along with overwhelming interest from
municipal investors, led to borrowing costs of 2.325%.
Ahead
of the financing, the State secured its credit ratings with Standard
and Poor’s (AA/Stable), Moody’s Investors Service, Inc. (Aa2/Secure),
and Fitch Ratings (AA/Stable).
25 comments:
That equates to $13 dollars for every man, woman and child in Mississippi.
Sounds wonderful. Need to do more of this.
Looks like McRae is making good on his election promises. Good for him and us.
Bonds = government living beyond their means.
Whooppee! So who were the non-state employees who got paid for their services?
@10:51,
A penny saved is a penny earned. I imagine you are the type that complains about every dime the State spends if it doesn't somehow end up in your pocket.
I love reading press releases about people doing their job.
Still doesn't make up for the money stolen in the last administration. Has anyone ask him to help get it back?
This was a market driven refinancing. Municipalities all over the country are doing these. Nothing special for the Gov. or Treas. They didn't create these savings, the Fed is responsible. All they did was say yes to the bond underwriters who came calling.
12:08, and? What is your point?
Choosing a good bond underwriter is part of their job. Listen8bg to them and their pitches is part of the job. Dealing with good capable underwriters is what makes the difference in what, if anything, is saved.
They could have done nothing, but that would be not doing their job.
They could have dealt with underwriters who have been featured here on JJ in tge past, as several municipalities have done, since you note that munis are doing this today.
But they didn't. They evidently dealt with a quality firm that developed a sound plan. And yes, it was taking advantage of the Fed's having created low interest rates. But that is certainly not all there is to it.
So be thankful they did their job and listened to those underwriters you say had come calling and used their good sense to do it.
“So be thankful they did their job...”
The low bar in Mississippi for guv jobs
Hey guys, I also went to work today. I even showed up on time mostly. Anyone want to offer me congratulations?
These are the same type politicians who criticize the youth for being soft because of their participation trophies. Meanwhile their secretary writes them a self congratulatory press release for something they spent 5 minutes with a rubber stamp to approve.
Great job Mr. McRae !
Reminds me of the classic 1970 film "Patton".
To paraphrase:
General Bradley:
"My God George . . . you have advanced over one hundred miles into Germany. Eisenhower told you not to do that" !
General Patton:
"As Ike if he want's me to give it back " .
"Bonds = government living beyond their means." Dumbass @ 11:16...no municipality, county or state saves up enough money to finance highway or road improvements...Or complete sewer redesign or tarmac replacement, or building a six lane road across a railroad to connect two arteries four miles apart,including three traffic signals. But, you're working at Home Depot..Right?
I know I would hate to be the suckers who buy the new bonds and needing to unload them when (and it is coming) rates skyrocket again. I guess that is why we have so many slick talking bond dealers. They will be there when you buy the bonds, but you will not be able to find them when you need to liquidate them.
Follow the money to the bond counsel and others that made fees from this. And idiot can refi a loan that is backed with taxing authority and a reasonable rating.
I'm guessing Lord Snow got a healthy chunk of the $36M. I'm glad the State took this action, but as others have said, with interest rates dropping, it would have been dereliction of duty to not refinance.
5:36 and 8:16 -- if you really believe what you post, you have an option to purchase these bonds. If you think they are "reasonable" then buy them. If you think Lord Snow got a healthy chunk (which they didn't but you didn't bother to check the deal, only posted your bitches without reason) please tell us why the state shouldn't have taken this action - without your favorite Lord Snow.
536, many of your 'idiots' are very happy to purchzse these bonds at this rate - realuze you don't understand this at your current investment level. And as rates increase, which we all know they well over time, they will start selling these bonds and investing elsewhere- happy to have stored there dollars for a while in this safe haven.
Bond counsels,underwriters, etc all are in business just as you are flipping hamburgers for Leroy who is losing money in his failed franchises. We all have a role to play. Just as the market will always be a market where wiling buyers will buy and willing sellers will sell - all recognizing the role that the Fed plays, the counsels play, as well as the role the underwriter plays.
Just as when you go to the local grocery store, the cattlemen has a role, the feedlot operator, the butcher, the trucker, the grocery wholesaler, and the local retailer does before you purchase your 80% lean ground beef to grill this weekend. Nothing different - you just don't like your role in the process.
Attn 12:49. Do you have any idea what happens to “safe” bond prices during a rising rate environment? I didn’t think so!
Yes. They drop.
Next?
Fees on these two deals totaled $2,182,770, not including the swap termination fee of $36,678,400. Of the $2,182,770, $1,542,129 went to the underwriters. No details available on the remaining $640,741.
12:14 Has Lord Snow named you a partner yet?
The banks tell me that refinancing my house, in order to 'save $200 a month, will save me a lot of money in the long run. Bull Shit. What it actually does is make a helluva lot more money for the bank while extending my obligation another 15 to 30 years while very little goes toward principle.
You think banks exist on every corner in town in order to save you money and saving you money is how they can afford those buildings?
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