Cash-Flush Florida Tries to Buy Back Its Bonds for First Time

Florida bond investors are about to have an unusual decision to make — whether to sell their debt back to the state that issued the securities in the first place.

The state is offering its first ever buyback, or what’s known as a tender, to current holders. Essentially, state officials want to reduce their debt load, so they are offering to purchase the bonds at a premium. Usually this type of transaction is funded through a new bond sale as a refinancing tactic. But Florida is just offering cash after lawmakers set aside $500 million to pay down debt in ...