Printer Friendly

COMMONWEALTH TANS SELL EXCEPTIONALLY WELL ON WALL STREET

 HARRISBURG, Pa., Oct. 13 /PRNewswire/ -- Acting Gov. Mark S. Singel today reported that the Commonwealth's $400 million tax anticipation notes (TANS) had an overwhelming reception on Wall Street and received the lowest interest rate on an initial sale of tax notes in nearly 30 years.
 The net interest rate on the notes was 2.717 percent. Last year, at this time, the TANS sold for 3.15 percent. In 1965, the same sale earned an interest rate of 2.579 percent.
 Prior to the sale, the bonds were rated with the highest possible credit ratings from Wall Street.
 TANS are a form of short term borrowing used by state and local governments to maintain consistent payments for government services.
 "This outstanding reaction from Wall Street is further proof that confidence in our financial policies continues," Singel said. "Today, we once again demonstrate to the taxpayers of this Commonwealth that we are doing everything possible to maintain our solid financial management.
 "The exceptionally low interest rate translates directly into substantial savings of state tax dollars."
 The acting governor said that 37 bids were received.
 The winning bids were submitted by:
 -- CS First Boston
 -- First Chicago
 -- Prudential Securities
 -- Morgan Stanley
 The highest ratings obtainable were confirmed by each agency as follows:
 Standard and Poor's SP-1+
 Fitch Investor Service F-1+
 Moody's MIG 1
 The proceeds of the short-term loans will be used to make regular state payments until the last quarter of the fiscal year when over one- third of the state's revenues are collected. At that time, the notes will be paid off in full.
 /delval/
 -0- 10/13/93
 /CONTACT: Sue Grimm, deputy press secretary, of the Commonwealth News Bureau, 717-783-1116/


CO: Pennsylvania Office of the Governor ST: Pennsylvania IN: SU:

MJ -- PH032 -- 1849 10/13/93 16:28 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 13, 1993
Words:299
Previous Article:JEFFERSON SMURFIT ANNOUNCES COMPANY-WIDE RESTRUCTURING PROGRAM
Next Article:EBMUD DEDICATES NEW STORMWATER PLANT, OPENS SHORELINE TRAIL
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters