Vermont issued $107.7 million in bonds to finance capital improvements and refund previously issued securities.
The state sold the bonds in two series. The 2024 Series A bonds, consisting of $70.8 million, mature between 2025 and 2044, yielding between 2.9% and 3.88%. The 2024 Series B bonds, consisting of $36.9 million, mature between 2025 and 2034, yielding between 2.9% and 3.16%. The securities received a rating of AA+ from Fitch Ratings, Aa1 from Moody’s Investors Service, and AA+ from S&P Global Ratings.
The rating reflects “a track record of disciplined financial management and cautious revenue forecasting, which, when coupled with the state’s healthy fiscal reserves and ample expenditure-cutting capacity, position Vermont well through the cycle to absorb budgetary challenges associated with future economic downturns,” Fitch analysts wrote.
Vermont will use the proceeds from the Series A bonds to fund capital projects across a variety of state departments. The largest disbursement, some $16.7 million, will finance improvements to state buildings.
Vermont will use the proceeds from the Series B bonds to refund securities that it sold in 2014.
The bonds are general obligations of the state, backed by its full faith and credit.
Piper Sandler & Co served as underwriter on the Series A bonds, and Jefferies LLC served as underwriter on the Series B bonds. Public Resources Advisory Group acted as financial advisor.