| ODOT sells bonds for next round of highway, bridge construction |
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| ODOT News |
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For more information: Shelley Snow, (503) 986-3438
SALEM — The Oregon Department of Transportation, through the Office of the State Treasurer, plans to sell $336.7 million in Highway User Tax Revenue Bonds beginning March 10. These funds will finance highway and bridge maintenance and repairs under the statewide Oregon Transportation Investment Act.
ODOT received high ratings of AAA, Aa2, and AA on its senior bonds from Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings, respectively. In ratings reports, S&P, Moody’s, and Fitch note that ODOT’s high ratings reflect:
- strong legal provisions and debt service coverage ratios; and
- strong cash position, which helps meet unforeseen events.
“It’s through the combined efforts of ODOT and the State Treasurer that we’re able to provide the high quality bonds investors demand,” said ODOT Chief Financial Officer Les Brodie.
In 2003, the Oregon legislature approved the OTIA III bill authorizing the state to issue $1.9 billion in highway user tax revenue bonds, an amount that nearly quadrupled prior authorizations. The OTIA III program has boosted Oregon’s economy by employing thousands and improving travel times. In 2008, OTIA created or sustained just under 3,500 jobs. Overall, the annual average of jobs on the bridge program is approximately 2,300 for the 10-year duration of the program. ODOT has approximately $577 million in OTIA authorization remaining after the sale of the 2009 bonds and anticipates issuing the remaining balance over the next three fiscal years.
Bonds will be sold through retail and institutional marketing venues beginning March 10. ODOT bonds can only be purchased through a participating broker-dealer. Prospective buyers should review an Official Statement from the Office of the State Treasurer, Debt Management Division or through a broker-dealer. Additional information is available at www.buyoregonbonds.com.
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