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Wake County News > Posts > Wake Sells $94 Million of Bonds for Schools & Wake Tech
March 24
Wake Sells $94 Million of Bonds for Schools & Wake Tech

Wake County competitively bid and sold $94 million in fixed-rate, tax-exempt general obligation (GO) public improvement bonds (Series 2015) on Tuesday, March 24, 2015, for the Wake County Public School System ($36 million) and Wake Tech ($58 million) building programs. The three major rating agencies confirmed the County's triple-A rating in early March in conjunction with the bond sale.

Commissioners approved the resolution to sell the GO bonds at their regular meeting on Monday, March 2, 2015. Today, the County received seven bids for the general obligation bonds with the winning bid being awarded to Bank of America Merrill Lynch, at a true interest cost of 2.57 percent.

"Wake Tech is one of our key economic development partners," said County Manager Jim Hartmann. "It is essential that the County continues to plan ahead and invest in the infrastructure needed to meet the growing needs of both our community college and our K-12 public school system. The County's exceptional credit rating allows us to have the lowest financing cost available in the market, which provides the lowest cost of debt to the tax payer."

The school bonds are the second bonds to be issued from the $810 million of school bonds approved by the voters on October 8, 2013. The bonds from this sale will be used to fund design start-up, off-site infrastructure and land acquisition for future schools as well as life cycle repair and renovation projects at existing schools.

The Wake Tech bonds are the second bonds to be issued from the $200 million of community college bonds approved by the voters on November 6, 2012. The bonds for Wake Tech will fund construction of two new classroom buildings at the Northern Campus, prepare the RTP Campus for its first classroom building to be constructed next year and fund renovations at Wake Tech's main campus.

Wake's triple-A bond rating allows the County to receive low interest rates on debt issued for capital expenditures. The County's triple-A rating was affirmed by rating agencies prior to the sale. Fitch, Moody's, and Standard and Poor's base their decisions on factors including the County's excellent financial management, diverse economic base and sound financial position. Wake County has received the highest possible rating from Moody's since 1973; Standard & Poor's since 1983 and Fitch since 2000.





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