Arlington County Sells $77 Million in IDA Revenue Bonds
May 22, 2013
- Bonds sold in two negotiated sales
- Financing for 2020 14th Street North; refinancing of Buckingham Village 3
- Refunding of prior debt saves more than $1.8 million
ARLINGTON, Va. — Arlington County on Tuesday, May 21, issued $77 million of Revenue Bonds through the Arlington County Industrial Development Authority (IDA). The County received an average interest rate of 3.6% on the taxable-rate new money portion of bonds.
Proceeds of the sale will be used to finance the County’s acquisition of 2020 14th Street North, a seven-story office building planned for use as a homeless services center and for County offices, to refinance the County’s short term notes issued for Buckingham Village 3, 140 historic units which the County bought in March 2009 to be redeveloped as committed affordable housing units, and to refund prior County revenue bonds for debt service savings.
“Once again the County has benefited from its high credit ratings and current low interest rates to successfully finance, and refinance, critical County assets,” said County Manager Barbara Donnellan.
Refunding prior debt at lower rates saves $1.8 million
The IDA revenue bonds were issued in a mix of both taxable and tax-exempt debt. The taxable rate bonds were issued to fund the 2020 14th Street North and Buckingham Village 3 projects, while the tax-exempt debt was issued to refund older bonds for savings of more than $1.8 million on a present value basis. Morgan Stanley served as senior underwriter for the tax-exempt bonds, while Citigroup was senior underwriter for the taxable bonds.
Ratings on the bonds were AA+ by Standard & Poor’s and AA by Fitch Ratings. Subject-to-appropriation bonds typically carry slightly lower bond ratings than general obligation bonds due to the lack of a full faith and credit pledge by the County.