Town Of Leesburg Takes Advantage Of Historically Low Interest Rates In Bond Refinancing

Press release from the Town of Leesburg:

12/10/2020

Leesburg, VA (December 10, 2020) – Town of Leesburg officials announced that the town refinanced $13.5 million in Series 2011 General Obligation (G.O.) bonds through a competitive sale on Tuesday, December 8, 2020. The new Series 2020 G.O. Refunding Bonds were purchased by Fidelity Capital Markets at the total interest of cost 0.405%. As a result of the refinancing, the Town will save $1.05 million in interest payments over the remaining ten years of the bonds’ life.

“In my career, I’ve never seen interest rates this low for this long a bond issue. The refunding will benefit both the General Fund and the Utilities Fund.” commented Clark Case, Leesburg’s Director of Finance and Administrative Services.

The bond refinancing creates a budgetary savings in the Fiscal Year 2021 General Fund Budget of $3.7 million, the result of pushing the bond repayment costs into future years. The final maturity of the debt will remain the same.

Earlier this month, Town officials met with the major bond rating agencies and obtained reaffirmed AAA ratings with stable outlooks from Fitch Ratings, Standard & Poor’s, and Moody’s. The rating agencies all cited the town’s diverse tax base, population growth, continued economic development, and very strong management in their findings. AAA rating with a stable outlook is the highest rating possible for municipal governments.

Media Contact:
Betsy Arnett
Public Information Officer
barnett@leesburgva.gov
703-771-2734

This press release was produced by the Town of Leesburg. The views expressed are the author's own.