Loudoun County has sold $156.6 million in general obligation (GO) bonds at a favorable interest rate of 1.46%. The county received $21.2 million in premium, which was accepted and will be used for Loudoun County Public Schools (LCPS) projects to reduce a future issuance. Eight bidders submitted offers for the county’s bonds. Morgan Stanley & Co, LLC offered the bid with the lowest interest rate, which the county accepted.
Proceeds from the GO bond sale will be used to finance the following capital projects:
Additionally, the county has sold through the Economic Development Authority $56.5 million of tax-exempt public facility revenue bonds with a true interest cost of 1.54%, and $18.3 million of taxable public facility revenue bonds with a true interest cost of 1.27% for a total amount of $74.8 million. The county received $10 million of premium which was used to downsize the par amount of the bonds. Eight bidders submitted offers for the tax-exempt bonds. KeyBanc Capital Markets offered the bid with the lowest interest rate, which the county accepted. Six bidders submitted offers for the taxable bonds. BNYMellon Capital Markets offered the bid with the lowest interest rate, which the county accepted.
Proceeds from the EDA bond sale will be used to finance the following capital projects:
The county also refunded the Series 2011A Industrial Development Authority Public Facility Lease Revenue Bonds which achieved budgetary savings of $5.35 million over the remaining life of the loan and 22% present value savings.
Last week, the nation’s top bond rating agencies reaffirmed the county’s triple-A rating on its general obligation bonds, and the high AA+ and Aa1 rating (AA+ by Fitch and S&P Global and Aa1 by Moody’s) on its appropriation-backed bonds through the EDA. The ratings agencies noted the county’s strong operating performance and sound reserves, sizable and diverse tax base and moderate long-term liability burden. Loudoun County has held the Aaa rating from Moody’s since 2004, and AAA from Fitch Ratings and S&P Global since 2005. A high bond rating helps the county achieve the best possible interest rates to finance capital projects, saving taxpayers millions of dollars.
More information on Loudoun County finances and the county’s triple-A bond rating is online at loudoun.gov/BondRatings.
# # #