State sells bonds delayed by legislative impasse

Nevada this week sold more than $200 million worth of bonds which had been held up since June by the legislative budget impasse.

Treasurer Brian Krolicki said Thursday's sale followed the decision of the three major national ratings agencies not to downgrade Nevada's bond rating from AA.

"By confirming our strong ratings, this will save over $100 million in existing bond values and future interest payments," Krolicki said.

But analysts in the treasurer's office also pointed out the state would have saved another $6 million in interest over the term of the bonds had they been able to sell them in June when interest rates were a bit lower.

The state was able to sell about $65 million worth of bonds in June because those bonds were not guaranteed by the state general fund.

The remaining $135 million was put on hold until the Legislature resolved its dispute over the budget and tax increases needed to pay for it.

The first series was $23 million in water refunding bonds. The eight year series went for a low 2.67 percent interest rate to Lehman Brothers. The next series was $20 million in university refunding bonds, which went for 2.75 percent interest over seven years to Zions' First National Bank.

The biggest on the list was $61 million in Open Space, Parks and Cultural Resources bonds which will cost the state 4.43 percent interest over the next 18 years. Finally, the Open Space, Parks and Natural Resources bonds worth $31 million went for 4.57 percent interest over 20 years. Both those issues were awarded to Citigroup.


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