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2009-09-03 digital edition

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2009-09-03 / General Stories

Note Sale Is Best In History

Texas Comptroller Susan Combs announced that Texas' highly anticipated sale of $5.5 billion in Tax and Revenue Anticipation Notes (TRANs) achieved an interest rate of 0.48 percent — the lowest rate the state has ever received on its annual sale of shortterm notes.

"We had an impressive sale and an excellent interest rate — the best Texas has ever had," Combs said. "Buyers bid more than $28 billion to obtain a portion of the $5.5 billion in notes Texas offered for sale Tuesday. That is more than five times the amount available for purchase. The high demand for Texas' high-quality notes drove the interest rate down to its his- toric low."

Texas will use the proceeds of the TRAN sale to distribute state funding to public schools early in the upcoming fiscal year and manage its cash flow between the start of the fiscal year and the arrival of tax revenues later in the year.

"The bond rating firms gave our TRANs the highest possible ratings," Combs said. "The sale shows the financial community's utmost confidence that Texas is a great investment, and our state government continues to be fiscally responsible by spending taxpayer dollars wisely."

The TRAN notes sold Tuesday will be repaid Aug. 31, 2010.

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