Arlington Bond Sale Yields 2.5% Interest Rate
May 01, 2013
- $206 million sold in negotiated sale
- Financing secured for Schools, Metro, Long Bridge Park & more
- Refunding of prior debt saves over $5 million
ARLINGTON, Va. — Arlington County on Tuesday issued $206 million of General Obligation Public Improvement and Refunding Bonds. Of the total, $94 million was new funding issued as traditional tax-exempt bonds.
The County received an average interest rate of 2.49% on the new money portion of bonds — the lowest Arlington has ever received for a new money bond sale. Proceeds of the sale will finance projects approved by the County Board, including the County’s capital contributions for Metro; Neighborhood Conservation; WalkArlington; BikeArlington; Long Bridge Park; Paving; Arlington Public Schools projects and improvements to the Water Pollution Control Plant.
“The County continues to benefit from extremely low interest rates that help us fund critical capital investments at the lowest possible cost to taxpayers,” said County Manager Barbara Donnellan. “We also have successfully refunded older, high interest debt to generate further savings and help reduce the County’s annual debt service costs.”
$5 million saved by refunding prior debt at lower rates
The remaining $112 million of bonds was issued in a mix of both taxable and tax-exempt debt and used to refund older, high interest rate County bonds. Morgan Stanley served as senior underwriter for the tax-exempt bonds, while Citigroup was senior underwriter for the taxable bonds. Total savings from the refunding is more than $5 million on a present value basis.
Arlington’s ability to receive record-low interest rates for its bonds is a reflection of the County’s sound financial management, reflected in its ranking as one of only a handful of jurisdictions across the nation to hold a Triple-AAA rating for its bonds.