On June 17, 2020, the State of Ohio (the “State”), through the Ohio Public Facilities Commission (“OPFC”), sold its $780.010 million General Obligation Refunding Bonds consisting of $492.195 million General Obligation Refunding Bonds, Series 2020A (Federally Taxable) and $287.815 million General Obligation Refunding Bonds, Series 2020B (Tax-Exempt) (the “Bonds”). This was OPFC’s first negotiated transaction since 2011 and the largest financing for the State with an MBE as senior manager.
The Bonds were rated Aa1 (Stable) / AA+ (Stable) / AA+ (Stable) by Moody’s, S&P and Fitch, respectively. Bond proceeds were used to achieve refunding savings to lower interest costs and re-amortize a portion of the State’s FY 2021 principal payments. In aggregate, the State was able to achieve more than $363 million of cash flow savings in Fiscal Year 2021 to help balance their budget for the next fiscal year. In addition, the State achieved over $107 million in Net Present Value Savings or 13.7% of the refunded par amount with an All-In True Interest Cost of 1.54%. In support of the transaction, the Firm underwrote approximately $30 million of unsold balances to complete the transaction.