Greensboro, North Carolina, issued $126.5 million in bonds to refund previously issued securities.
The city sold $101.37 million in tax-exempt bonds and $25.16 million in taxable bonds. The tax-exempt bonds mature between 2035 and 2054, yielding between 3.25% and 4.16%. The taxable bonds mature between 2025 and 2035, paying interest at rates between 4.83% and 5.23%. The securities received a rating of Aa1 from Moody’s Investors Service and AAA from S&P Global Ratings.
“The Aa1 rating reflects sound and stable financial metrics supported by steady customer growth, substantial annual rate increases and long-term capital planning,” Moody’s analysts wrote.
The city will use the bond proceeds to refund bond anticipation notes that it sold in 2022.
Greensboro is in central North Carolina and the state’s third-most populous city. The bonds are special obligations of the city, payable by net receipts from its growing water and sewer system. The 2022 notes were also payable by these receipts. The city’s water and sewer system recorded $139.5 million in operating revenue last fiscal year, a 13% increase from 2021 levels.
BofA Securities, Inc served as lead underwriter on the issuance, purchasing the bonds for $135 million. The price reflected a premium of more than $8 million. DEC Associates, Inc acted as financial advisor.