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Town of Leesburg Saves $1.4 Million by Refinancing Bonds
Leesburg, VA (June 27, 2019) – Town of Leesburg officials announced that the Town has refinanced $12.4 million in Series 2009 General Obligation (G.O.) Build America bonds through a competitive sale. The new Series 2019 G.O. Refunding Bonds were purchased by J.P. Morgan Bank at a total interest cost of 1.92%. As a result of the refinancing, which did not extend the life of the bonds, the Town will save $1.44 million in interest payments. The interest rate of the 2009 bonds averaged 4.5%.
“In my 36 year career in public finance, I cannot remember ever financing below 2%,” commented Clark Case, Leesburg’s Director of Finance and Administrative Services. “The Town’s strong credit ratings and favorable bond market conditions made this successful refinancing possible.”
Earlier this month, Town officials met with the major bond rating agencies and obtained reaffirmed AAA ratings with a Stable Outlook from Fitch Ratings, Standard & Poor’s, and Moody’s. The rating agencies cited a very strong economy, very strong management, budgetary flexibility, and overall liquidity of the Town in their reports. AAA ratings with a Stable Outlook is the highest rating possible for municipal governments.
Public Information Officer