Loudoun County has completed a major bond sale with proceeds from the sale of general obligation (GO) bonds to be used for capital projects for the general county government and Loudoun County Public Schools (LCPS). In advance of the sales, the nation’s top bond rating agencies reaffirmed the county’s AAA rating on its general obligation bonds, and the high AA+ and Aa1 rating on its lease revenue bonds.
On Thursday, Loudoun County sold $199.9 million in GO bonds at a favorable interest rate of 1.48 percent. The county received $29.8 million in premium, a portion of which will be used for LCPS projects to reduce a future issuance. The bond sale also included refundings of two outstanding GO bond issues; 2009B, which will achieve savings of $307,030 in FY 2021; and 2010B Build America Bonds, which will achieve savings totaling $3,775,729 over the next nine years. Six 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:
Earlier this month, 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 lease revenue bonds. 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 its triple-A status is online at loudoun.gov/BondRatings.
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