GTRAN & ETRAN

Treasury Short-Term Borrowings

General Fund Tax and Revenue Anticipation Notes (GTRAN)

On July 17, 2012, the Treasury issued $500 million in tax and revenue anticipation notes (GTRAN Series 2012A). The notes mature on June 27, 2013, and so are repaid entirely within the same fiscal year.  These borrowings are done to even out cash flow for the state.  Due to irregular flows of revenues, this financing provides funds to meet the state's liquidity need throughout the year.  The interest on the notes of $11.2 million and the costs of issuance are paid from the premium of $10.3 million received and investment earnings.

Education Tax and Revenue Anticipation Notes (ETRAN)

On July 11, 2012, the Treasury issued $125 million in notes (Series 2012B) on behalf of the State of Colorado Education Loan Program to meet cash flow shortages experienced by local school districts.  Series 2012B were issued at a premium of $2.2 million; and the interest due at maturity is $2.4 million.   These notes mature on June 27, 2013; and by statute, the interest is payable from the General Fund.

Read a copy of the offering's Official Statement here.

Ratings

The GTRAN and ETRAN received the following ratings:

• SP-1+ from Standard and Poors, the agency's highest rating
• MIG1  from Moody's, the agency's highest rating