GTRAN & ETRAN
Treasury Short-Term Borrowings
General Fund Tax and Revenue Anticipation Notes (GTRAN)
On July 19, 2018, the Treasury issued $600 million in tax and revenue anticipation notes (GTRAN Series 2018). The notes mature on June 26, 2019, 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 $24.34 million and the costs of issuance will be paid in part from the premium of $15.55 million received and investment earnings.
Education Tax and Revenue Anticipation Notes (ETRAN)
On July 18, 2018, the Treasury issued $310 million in notes (ETRAN Series 2018A) on behalf of the State of Colorado Education Loan Program to meet cash flow shortages experienced by local school districts. The Series 2018A notes were issued at a premium of $7.94 million; and the interest due at maturity is $12.62 million. Then, on January 16, 2019, the Treasury issued $325 million in parity notes (ETRAN Series 2018B). The Series 2018B notes were issued at a premium of $2.66 million; and the interest due at maturity is $5.01 million. Both notes mature on June 27, 2019; and by statute, the interest is payable from the General Fund.
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