For Immediate Release
Tuesday, 11 January 2000
The First $250 Million in School Bonds Sold, Today
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COLUMBIA, SC – "Courageous Legislators who fought for education (like the ones standing with me, today) built the environment that allowed South Carolina to issue bonds for school improvements. They showed enormous strength fighting for our children last year, so that this year our children can begin learning in 21st century classrooms.
"But, the environment was also created by these, and Legislators from long ago. Our children are now benefiting from generations of intelligent, conservative fiscal management. We could not enjoy such low rates for school improvements without the wise spending philosophies of the past. The three major rating agencies all gave this $250 million bond issue their highest ratings.
"All of the agencies’ ratings were based on South Carolina’s "conservative fiscal management, manageable debt levels, and steady positive economic performance." They also mentioned that due to "constitutional and statutory restrictions on general obligation borrowing" and maximums on annual debt service our debt levels remain low. (I am proud to be the instigator of many of those reforms).
"I want to take a moment to say this: We must remain guardians of the state’s financial standing so that, as needs arise in the future, we can rise to the challenge again. The people of South Carolina deserve no less.
"Finally, I want to say that this has been a long time coming. I first talked with Senator Jim Bryan about this over two years ago. Since then I have worked with many good folks to make this a reality. I am so glad that a lot of them are here.
"School Bonds became the center-piece of my campaign in 1998 because I saw some of the awful conditions we were subjecting children to as I traveled the state. With the continued commitment of the people of South Carolina, and the people in this room, our schools will get better. And, more importantly, our children will be better prepared for the jobs of tomorrow."
Background Information
$250 Million School Bond Sale
COLUMBIA, SC – The State of South Carolina received four bids for the $250 million School Facilities Bond Issuance today between 11:00-11:15 a.m. Three bids were made on-line via the internet and the fourth was submitted by fax.
Merrill Lynch/NY, WFC, won with a low bid of 5.34%. Salomon Smith Barney, Inc. (5.35%) was next, followed by Bear, Stearns & Co., Inc. (5.36%) and the high bid was from Lehman Brothers at 5.38%.
The School Facilities Bond was given the highest rating possible by the three major rating agencies (Fitch IBCA, Moody’s and Standard & Poor’s) meaning South Carolina paid the lowest rates available under current market conditions.
The State of South Carolina expects the Bonds for delivery on or about January 25, 2000. At that time, funds will begin to be disbursed by the proper state agencies (most notably the Superintendent of Education’s Office) to school districts statewide.
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For more Information, contact:
David A. Adams, 803/734-0380