Augusta, Georgia, issued $250 million in bonds to finance the construction of a new arena in the city’s downtown area.
The bonds mature between 2025 and 2043, yielding between 4.55% and 5.2%. They received a rating of Aa2 from Moody’s Investors Service and AA from S&P Global Ratings.
“The Aa2 issuer rating incorporates Augusta’s demonstrated track record of prudent budget management that will continue to support strong operating results and maintenance of healthy reserves,” Moody’s analysts wrote.
The city will use the issuance proceeds to fund the development of a new multipurpose arena. The new complex will replace the existing James Brown Arena, which hosts concerts and has sporadically been home to minor league sports teams, in leagues such as the Southern Professional Hockey League. The new stadium will have 25% more capacity, with space for 10,500 people. The project is expected to complete in 2026, with a price tag of $299 million.
Augusta is the second-biggest city in Georgia (after Atlanta), located on the border with South Carolina. The bonds are general obligations of the city, payable first by a 0.5% sales tax and second by property taxes. Voters approved the 0.5% sales tax to facilitate arena-building in November of last year.
Wells Fargo Bank, NA, served as lead underwriter on the issuance. Davenport & Company LLC acted as financial advisor.