Commonwealth of Virginia, Office of Governor Bob McDonnell

~The Commonwealth Takes Advantage of Historic Low Tax-Exempt Interest Rates~

RICHMOND – Governor Bob McDonnell announced today that the Commonwealth
Transportation Board (CTB) sold more than $124 million in refunding bonds at
a true interest cost of 1.38 percent, saving $25.8 million over the next 16
years. The savings will result in lower debt service costs for bonds issued
under the Northern Virginia Transportation District and U.S. Route 58 bond
programs.

“The CTB was fortunate to lock in lower costs while tax-exempt rates
are near historic lows,” said Governor McDonnell.  “The savings will benefit
Virginia’s transportation program and will allow us to continue to stretch
our available transportation dollars to provide the most benefits possible
to Virginia taxpayers.”

The CTB Commonwealth of Virginia Transportation Revenue Refunding
Bonds were sold through a competitive bidding process with the CTB receiving
11 bids.  Bank of America Merrill Lynch submitted the winning bid with a
true interest cost of 1.38 percent.  The bonds were rated Aa1 by Moody’s and
AA+ by Fitch and Standard and Poor’s.

Office of the Governor
Contact: Jeff Caldwell
Phone: (804) 225-4260
Email: href="mailto:Jeff.Caldwell@Governor.Virginia.Gov">Jeff.Caldwell@Governor.Virginia.Gov

Virginia Department of Transportation
Contact: Tamara Rollison
Phone: (804) 786-2715
Email: href="mailto:Tamara.Rollison@VDOT.Virginia.Gov">Tamara.Rollison@VDOT.Virginia.Gov

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