Newsroom
For Immediate Release
Saturday, June 13, 2009
Contact: Diana Sun 703-228-3247 (voice) 703-228-4611(TTY)
Arlington, Virginia Set to Issue First-Ever Retail Bond Offering
NOTE: For those who are interested in buying Arlington County bonds, please go to www.BuyArlingtonVaBonds.com. The retail order period begins July 13.
ARLINGTON, Va. --- The Arlington County Board today approved the sale of up to $139.2 million of General Obligation Public Improvement and Refunding Bonds. For the first time, priority will be given to Arlington County and Virginia retail investors to buy the County’s bonds.
“The sale of Arlington bonds to individual buyers will greatly help diversify our investor base,” commented Barbara A. Favola, chair of the Arlington County Board. “We’re pleased to be able to respond to the many requests over the years from Arlingtonians who wish to invest further in our community.”
First retail sale
The sale of bonds will most likely take place in early July 2009.
Arlington County is in the process of receiving proposals from broker/dealers and will soon select a number of them from whom individuals can purchase Arlington County General Obligation Bonds.
In prior years, Arlington’s bonds were sold largely to institutional buyers, such as insurance companies and mutual funds. Arlington County will be the first community in Virginia to use a unique competitive sale process in which the County’s underwriting team will first offer bonds to retail investors, with priority given to Arlington County and Virginia residents. Bonds that are left unsold after completion of the retail sale process will be offered via competitive sale in the normal municipal market.
Uses of the bond money
Arlington plans to raise up to $139.2 million of financing through the sale of these bonds, including up to $100 million to refinance bonds.
The sale of $39.2 million in bonds for capital projects was authorized during several previous elections, during which Arlington voters approved 13 bond referenda for capital improvement projects, including local parks and recreation; transportation & community infrastructure; Metro; Arlington Public Schools; and utilities.
Of the $139.2 million, the breakdown is:
- $14.9 million for County projects, including Neighborhood Conservation; land acquisition related to the Nauck Town Center project; various Parks projects; Washington-Lee pool improvements; and Metro.
- $24.4 million for Arlington Public Schools projects, including Yorktown High School construction; and design of Career Center and Wakefield High School improvements.
- Up to $100.0 million to refinance previously issued bonds. Based on current market conditions, the County anticipates saving approximately $1.3 million (net present value) over the life of the bonds, assuming a bond sale size of approximately $25 million. The County is asking for Board authorization to issue up to $100 million in the event that interest rates decline between the time of Board approval and the sale date of the bonds – to take advantage of lower interest rates.
Triple-AAA bond rating
For the eighth consecutive year, in 2008 Standard & Poor's, Fitch Ratings, and Moody's Investors Services all gave Arlington County’s general obligation debt the highest rating: AAA/AAA/Aaa. Arlington is one of only 22 counties in the United States to carry the coveted triple-A bond rating from all three rating agencies.
To read the Board report on this item, click here, go to the June 13 meeting and look for item # 49.
Arlington, Va., is a world-class residential, business and tourist location that was originally part of the "10 miles square" parcel of land surveyed in 1791 to be the Nation's Capital. It is the geographically smallest self-governing county in the United States, occupying slightly less than 26 square miles. Arlington maintains a rich variety of stable neighborhoods, quality schools and enlightened land use, and received the Environmental Protection Agency's highest award for "Smart Growth" in 2002. Home to some of the most influential organizations in the world - including the Pentagon - Arlington stands out as one of America's preeminent places to live, visit and do business.
