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News Release from Comptroller Susan Combs

For Immediate Release
August 25, 2009

Combs Says Short-Term Note Sale Is Best In Texas History

(AUSTIN) — 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 short-term 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. 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 historic 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. “Today’s 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 today will be repaid Aug. 31, 2010.

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