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News Release
June 11, 2003
Contacts: Natalie Gochnour, (801) 538-1503 or (801) 243-1349
Bridget Fare, (801) 538-1509
Kort Utley, (801) 538-1053

Utah Bonds at a Historically Low Interest Rate
State taxpayers will save because of Utah’s prudent fiscal management

The State of Utah sold $407 million in General Obligation bonds today to Merrill Lynch & Company at a historically low interest rate of 2.8%. Utah was able to obtain such a low interest rate because of outstanding market conditions and the state’s AAA bond rating, which it received last week. The state has not bonded at such low interest rates in at least 38 years.

“These interest rates are a real compliment to Utah’s fiscal management,” said Lt. Governor Olene Walker. “The rates will allow us to construct much needed state buildings and roads at substantial savings.”

The Utah Legislature authorizes the issuance of state bonds. The purpose of this $407 million dollar bond is four-fold:

• Construct a number of public buildings approved by the Legislature in their 2002 and 2003 General and Special Sessions. A new library at Utah State University is one of these buildings.
• Continue with the Centennial Highway projects around the state.
• Pay-off variable interest rate bonds and lock into low interest, fixed-rate bonds.
• Construct various state highway projects in Salt Lake County.

The state received bids from Merrill Lynch & Company; Goldman, Sachs & Co.; J.P. Morgan Securities Inc.; and UBS PaineWebber Incorporated. Merrill Lynch & Company was the successful bidder.

Lt. Governor Olene Walker is the Chair of the State Bonding Commission. Edward T. Alter, State Treasurer, and Janis R. Kline, CPA, are also members of the Commission.