Oregon Sees Strong Demand For its Bonds in Sale That Brought in $302 million

Bridges can be restored and replaced at a reduced cost to Oregonians.

Photo By: Tim King

(SALEM) - Oregon`s bridges and taxpayers will benefit from Monday`s successful sale of Oregon highway user revenue bonds, which brought in proceeds of $301,777,930.15 to repair and replace bridges in Oregon.

On Monday, the Office of the State Treasurer`s Debt Division coordinated, through its bond counsel Orrick, Herrington & Sutcliff and underwriter Bear Stearns & Co., the issuance of $291.5 million par amount in fixed rate debt at 4.54%.

`The importance of this week`s bond issuance to invest in our roads and bridges may be lost on many Oregonians, but it is foremost in my mind because of the excellent execution of a large offering in a very competitive market," said Treasurer Randall Edwards. `Because of the process and the relationships we have developed over the years, Monday`s sale of highway user bonds saved taxpayers money and will lead to safer roads and bridges."

Background

Beginning in 2001, the Legislature passed a series of bills known collectively as the Oregon Transportation Investment Act (OTIA). In 2001, the Legislature passed and the Governor signed into law House Bill 2142 (`OTIA I"), which authorized the State to issue Highway User Tax Revenue Bonds in an aggregate principal amount sufficient to produce net proceeds of not more than $400 million for modernization and preservation projects.

In May 2002, the State issued the first OTIA Bonds, the 2002A Bonds, which provided $225 million net proceeds have been spent for OTIA I and OTIA II projects. In January 2005, the State issued the 2005A Bonds. Net proceeds of $20 million of that issue have been spent for OTIA II preservation and modernization projects. The OTIA I and OTIA II programs have the same purpose and are jointly managed by the Oregon Department of Transportation.

The $1.9 billion total OTIA III bond authorization includes $1.3 billion for replacement and repair of bridges on State highways, $300 million for replacement and repair of bridges on county and city highways and $300 million for modernization projects.