The state has saved almost $14 million through a $255 million refunding, Treasurer Joseph P. Suggs announced last week.
"I thought it prudent to take advantage of the favorable bond market." Suggs said in a release. "In these difficult economic times, I am committed to aggressively seeking opportunities to save money for Connecticut taxpayers."
Wednesday's sale was undertaken to refund at a lower rate special tax obligation bonds that the state uses to fund the Connecticut Transportation Infrastructure Program.
The bonds were priced to yield from 2.50% in 1994 to 4.75% in 2006. The state reported a true interest cost of 4.44%. the lowest in the nine years the state has been selling the bonds for the transportation projects. The sale replaces bonds sold in 1986 through 1991 at rates from 6.5% to 7.5%.
Bear, Stearns & Co. served as senior manager and bookrunner, with Donaldson, Lufkin & Jenrette Securities Corp. as co-senior manager.