Loudoun County has sold $267.3 million in lease revenue bonds through the Economic Development Authority at a favorable interest rate of 1.79 percent. Thursday’s bond sale included a refunding of the outstanding Transportation Infrastructure Financing Innovation Act (TIFIA) loan, used to finance a portion of the Dulles Metrorail project; which achieved budgeted savings of $48.5 million through a lower interest rate and reducing the maturity from 24 years to 20 years. The sale also included a long-term financing of the Series 2018 Metrorail Bond Anticipation Notes. Six bidders submitted offers for the county’s bonds. J.P. Morgan Securities LLC offered the bid with the lowest interest rate, which the county accepted.
Proceeds from the lease revenue bond sale will also be used to finance these general government and Loudoun County Public Schools (LCPS) capital projects:
- Consolidated Shops and Warehouse
- Courts Complex Phase 3
- Developmental Services Group Residence – Purcellville
- Land Management Information System Replacement
- Public Safety Firing Range
- LCPS Broadband Infrastructure
- School Bus Replacement and Acquisition
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 about Loudoun County finances and the county’s triple-A status is online at loudoun.gov/BondRatings.
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