In November 2005, the District sold $250 million of tax revenue anticipation notes (TRANs) to finance the city’s seasonal cash needs for fiscal year 2006. Citigroup and Morgan Stanley each purchased half of the notes, via a competitive sale, at an interest rate of 3.28 percent. These notes are due and payable on September 29, 2006, the last day of the District’s fiscal year.
Also in November, Merrill Lynch won the competitive bid for the District’s $331.2 million in new money general obligation (GO) bonds (Series 2005A), which will finance the District’s on-going Capital Improvements Program and which have a final maturity of June 1, 2030. The bonds sold at a weighted average interest rate of 4.60 percent.
The TRANs and GO bonds were purchased by the above-named underwriting firms for resale to institutional and retail investors that have indicated an interest in purchasing District securities.
In December 2005, the District also sold a series of GO refunding bonds. The Series 2005B bonds, which totaled $116.5 million and have a final maturity of June 1, 2027, were offered to investors via an underwriting syndicate led by Morgan Stanley and Loop Capital Markets at a weighted average interest rate of 4.48 percent. The refunding bonds, which refinance existing bonds at lower interest rates, will provide the District with $4.12 million in present value savings over the next several years.
For more information regarding individual series of District bonds, please visit Digital Assurance Certification's website. DAC's site contains official statements for each outstanding District bond issuance.
