Pennsylvania Closes Bond Sale

By: Jeff Sheridan, Press Secretary

August 09, 2016

The Commonwealth of Pennsylvania closed a $1.2 billion bond sale today. The funding will be used to support capital projects, including infrastructure projects, across the commonwealth.

The sale received strong interest from 6 banks. The winning bidder, Bank of America Merrill Lynch had a 2.75 percent True Interest Cost. Over the long term, this will save hardworking taxpayers money.

The market clearly recognized that the commonwealth has turned the corner and begun to place itself on stronger financial footing.

The 2016-17 budget was an important step forward, and Moody’s and S&P’s positive actions regarding Pennsylvania’s outlook, combined with today’s bond sale results, reflects that fact. When the Governor Wolf came into office, following years of unbalanced budgets, the commonwealth faced a structural deficit of more than $2 billion. As a result of the governor’s push for sustainable, recurring revenue, we have made significant progress in reducing the deficit. We still have more to do and the governor looks forward to continuing to work with the legislature to finally fix the deficit and move the commonwealth forward.

Following the completion of the budget, S&P removed the commonwealth from CreditWatch, and recently Moody’s revised Pennsylvania’s overall outlook to stable from negative.

This all follows the final enactment of the commonwealth’s 2016-17 budget that is balanced and includes sustainable, recurring revenue to reduce our structural budget deficit.


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