State Treasurer Curtis Loftis Announces Savings Of $48 Million Dollars From New Bond Refinance

Coupled with 2011 refinance, Loftis administration saves taxpayersa total of $72 million. In addition, Moody’s and Fitch reaffirm SouthCarolina’s top-rated AAA credit.
 
COLUMBIA, SC – April 16, 2012 – State Treasurer Curtis Loftis announcesthe state has reached agreement to refinance $220 million of generalobligation bonds and $288 million of State Infrastructure Bank revenuebonds.  Refinancing will save taxpayers approximately $48 million. Theinterest rate was lowered while the term of the debt was not changed.

Thebond refinance affects institutions across the state, including morethan $75 million for previously issued projects at the University ofSouth Carolina, Medical University of South Carolina, Clemson Universityand Winthrop University.  Another $114 million refinanced bonds willfund public school facilities, capital improvements, economicdevelopment and transportation infrastructure.

“One of the most important responsibilities of the State Treasurer isto safeguard South Carolina’s financial health by saving money oncomplex debt transactions and in doing so we are very proud,” TreasurerLoftis said.   

 “Our office took advantage of favorable market conditions for thebenefit of all South Carolinians.  Saving money on debt is a windfallfor the taxpayer as it allows the savings to be invested in otherworthwhile projects without having to raise taxes.”
These recent savings, coupled with a $24 million refinance savings in2011, means the Treasurer’s Office has saved taxpayers a total of $72million in the past year by properly managing and refinancing existingdebt.

In conjunction with the bond refinance, credit rating firms Moody’sand Fitch reaffirmed South Carolina’s top-rated AAA credit, whileStandard and Poor‘s maintained the Palmetto State’s AA-plus rating.  Rating agency Fitch praised the Palmetto State in its recent report,saying “South Carolina’s ‘AAA’ rating rests on the state’s provenability and willingness to support fiscal balance.”  Click the links toview the Fitch, Moody’s and S&P reports. 

“My team works diligently to assure South Carolina taxpayers aregetting the most for their hard earned dollars,” Treasurer Loftis said.“I am proud of their ability and dedication in carefully managing ourfinancial reputation with Wall Street and pursuing opportunities thatsave taxpayers money.  The people of South Carolina may take comfortknowing that the staff of the Treasurer’s office consistently performsat the highest level.”