The State of Wisconsin is scheduled to issue $621,980,000 in General Fund Annual Appropriations Refunding Bonds the week of October 28th. The negotiated sale has Citigroup and Barclays as its principal underwriters.
About the Bonds
Proceeds from the bond issuance will refund all or a portion of the State’s current General Appropriation Fund bond issuance from 2008. The bonds are secured by a continuing authority of the State Legislature to provide for a specific annual appropriation.
In the opinion of Bond Counsel, interest on the Bonds is included in gross income for federal income tax purposes. Interest on the Bonds is not exempt from current Wisconsin income or franchise taxes. Fitch has given this bond issuance a rating of AA, while Moody’s has granted a rating of Aa2.
State of Wisconsin
State budgets can change with new political realities. Unlike General Obligation Bonds, these Bonds are not a stable and prioritized vector of State revenues. The State Legislature’s framework for a legal backing for its annual appropriation bonds is significantly supportive but does not provide conclusive evidence in support of a judicial determination that a payment is legally required.
Despite the unsecured status of the security for these bonds, these General Fund Refunding Bonds received only a slightly lower rating from Moody’s. This would seem to indicate that Wisconsin has a good track record of repaying their creditors. Wisconsin has a well-funded pension system and overall strong economic health.
Snapshot of the State finances as of FY 2018 ending on June 30th 2018.
Provided above is a quick snapshot of financial characteristics of the State of Wisconsin, courtesy of Merritt Research Services, LLC. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness).
These details and more on purposes, security, risks and other matters pertaining to these California General Fund Refunding Bonds can the found in the preliminary official statement, provided by MuniOS. After registering, if needed, visitors can link directly to the official statement as well as an investor’s roadshow by searching for ‘Wisconsin’.
These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.
Potential investors should rely only on the official documents and figures provided in the official statement (prospectus). Although the numbers presented in this summary are primarily derived from public documents, including issuer audits, issuer reports and other public sources such as federal reporting agencies , they are not intended to replace official information presented in connection with the bond sale. Medians provided by Merritt Research Services may differ from official sales documents due to methodology or survey base variances.