Municipal Bonds

Featured Bond – Week of August 5, 2019: State of Minnesota $673 Million in General Obligation Bonds


Downtown of St. Paul, MN and Mississippi river
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Featured Bond – Week of August 5, 2019: State of Minnesota $673 Million in General Obligation Bonds

Overview

The State of Minnesota is issuing $673 million in general obligation state bonds through competitive sale. The bonds are split into Series 2019 A-D. The 2019A bonds are $417 million in General Obligation State Various Purpose bonds. The 2019B bonds are $190 million in General Obligation State Trunk Highway bonds. The 2019C bonds are General Obligation Taxable State Various Purpose bonds. The 2019D bonds are $28 million in General Obligation State Various Purpose Refunding bonds.

The 2019 bonds are rated AAA by Fitch, Aa1 by Moody’s, and AAA by S&P.

More About the Bonds & Minnesota

The 2019A and 2019C bonds are being issued for the purpose of financing all or a portion of the cost of certain programs and capital projects. The types of projects the funding could be used for include educational facilities, parks, pollution control facilities, transportation, natural resources, and agricultural enterprises. The 2019B bonds are being issued for the purpose of financing the cost of construction, improvement, and maintenance of programs and projects of the State of Minnesota trunk highway system. The 2019D bonds are being issued for purpose of refunding around $32 million in principal amount of certain outstanding general obligation various purpose bonds of the State. The proceeds to refund the Refunded Bonds will be deposited in the Special Refunding Bonds Account established in the State Bond Fund.

Minnesota’s per capita personal income in 2018 was $56,374 which was 105% of the U.S. per capita personal income. Per the 2010 Census, the population in Minnesota was just over 5.3 million people. The unemployment rate in 2018 was 2.9%.

Security for the Bonds

The 2019 bonds are general obligations of the State of Minnesota and the full faith and credit and taxing powers of the state are pledged for the payment of the bonds and interest when due.

 

These details and more on purposes, security, risks and other matters pertaining to these Minnesota General Obligation Bonds can the found in the 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 State of Minnesota.

Statistical Snapshot: State of Minnesota Selected Financial and Economic Indicators

State of Minnesota Financial Indicators

State of Minnesota financial snapshot as of June 30 2018 Fiscal Year Audit. Source: Merritt Research Services, LLC

Provided above is a quick snapshot of financial characteristics of the State of Minnesota, 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).

 

 In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendarcity, state, and county pages.

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 may differ from official sales documents due to methodology or survey base variances.

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