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Late last week South Carolina Treasurer Curtis Loftis issued a press release boasting that he and his team saved the state $24 million by refinancing $361 million in bonds.
Refinanced was more than $340 million dollars in taxpayer funded general obligation debt and $20.8 million of the University of South Carolina’s state-institution debt.
Both winning bids were submitted by J. P. Morgan Securities, LLC. The true interest cost of the state general obligation bonds is 1.707% and 2.861% for the University state-institution bonds.
“I am proud of my team for looking at all possible ways to save precious taxpayer dollars,” Treasurer Loftis said. “It is important that we stay with a sound and conservative investment strategy that best protects state money. Any day we can let the citizens know we’re saving state money is a good day.”
Today, the Treasurer’s Office will also be obtaining bids for four state institution bonds which total $126 million dollars worth of projects at Clemson, MUSC, Midlands Tech and USC facilities across the state.
This week the state received the highest possible AAA bond rating from rating services Moody’s and Fitch Services. Standard & Poor’s gave the state an AA Plus (AA+) rating.
While praising the conservative and sound investment approach, the firms cautioned the state’s underfunded pension plans, high unemployment rates and growing Medicaid costs as signs that adding more debt could create future credit challenges.
Treasurer Loftis and his team vow to continue to take a sound and cautious investment approach while looking for any and all ways to continue to save taxpayer dollars.
Treasurer Loftis and his team are working hard creating the most transparent, accountable and efficient Treasurer’s office in the nation; please visit www.treasurer.sc.gov for more on the functions of the Treasurer’s Office.