Loudoun County has sold $156.7 million in general obligation (GO) bonds at a favorable interest rate of 3.16%. The county received $15.9 million in premium, which was accepted and will be used for capital projects for the general county government and Loudoun County Public Schools (LCPS) to reduce a future issuance. Eight bidders submitted offers for the county’s bonds. J.P. Morgan Securities LLC offered the bid with the lowest interest rate, which the county accepted. While this interest rate is higher than the county has received in recent years due to interest rates being at historic lows, interest rates have been rising considerably since January 2022. In the days leading up to the county’s bond sale, rates dropped, allowing the County to receive a favorable rate.
Proceeds from the GO bond sale will be used to finance the following county and school capital projects:
Additionally, the county has sold, through the Economic Development Authority, $55.3 million of tax-exempt, public facility revenue bonds, with a true interest cost of 3.18%, and $18.5 million of taxable, public facility revenue bonds with a true interest cost of 3.10%; for a total amount of $73.8 million. The county received $6.3 million of premium which was used to downsize the par amount of the bonds. Ten bidders submitted offers for the tax-exempt bonds. Mesirow Financial Inc. offered the bid with the lowest interest rate, which the county accepted. Nine bidders submitted offers for the taxable bonds. Robert W. Baird & Co. Inc 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 county and school capital projects:
Triple-A Bond Rating Reaffirmed
In May, the nation’s top bond rating agencies reaffirmed the county’s AAA/Aaa rating on its general obligation bonds, and the high AA+ and Aa1 rating on its appropriation-backed bonds through the EDA. The ratings agencies noted the county’s strong financial management practices and policies, operating performance, 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 is online at loudoun.gov/bondratings.
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