NEWS: Wake Sells $502 Million in General Obligation Bonds

3/17/2009

Wake County issued $502 million in fixed-rate general obligation bonds Tuesday, March 17, 2009 — $435 million in Public Improvement bonds to Merrill Lynch & Co. at 3.81 percent, and $67 million in Refunding bonds to BB&T Capital Markets at 2.16 percent.

Wake Commissioners approved resolutions to sell the bonds at their regular business meeting on March 2, 2009.

"This bond sale is significant in light of the current economy," said Wake County Manager David Cooke.

The sale of Public Improvement bonds includes:

• $300 million to refund the short-term Bond Anticipation Notes that the County issued in October 2008 for school projects, Wake Tech, open space and libraries.
• $100 million for Wake County Public School construction.
• $35 million for Wake Tech construction projects.
  

The remaining $67 million is to refund general obligation bonds issued in 1998, which should generate savings of approximately $4.5 million.

The County's triple-A bond rating translates into lower interest rates on debt issued for capital expenditures. In a report issued last week, Standard & Poor’s said the County’s solid financial position has been bolstered by strong management practices, a diverse revenue stream and a vibrant local economy.

Wake County has received the highest possible rating from Moody’s since 1973; Standard & Poor’s, 1983; and Fitch, 2000.

 

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