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Nashville Issues $375  Million in Notes

By Munichain News Desk

The Metropolitan Government of Nashville and Davidson County sold $375 million in commercial paper notes to provide interim financing for public works projects.

The bonds must mature within 270 days of their issuance, so they are likely to mature by the end of this year. They received a rating of P-1 from Moody’s Investors Service and A-1+ from S&P Global Ratings.

The notes are supported by a liquidity facility from TD Bank, NA.

“The P-1 rating on the Notes is based on the short-term Counterparty Risk (CR) Assessment of the Bank as provider of the Liquidity Facility, the general obligation rating of Metro and Moody’s assessment of the likelihood of an early termination of the Liquidity Facility without payment at maturity of the Notes,” Moody’s analysts wrote.

The city is planning a variety of public works projects this year to which it could put the bond proceeds. These include several transportation upgrades, include so-called smart traffic signals and expanded bus service.

Nashville last tapped the bond market in January, when it sold $367 million in bonds to fund electricity system upgrades.

Davidson County is the second-most populous in Tennessee and includes Nashville and its surrounding suburbs. The notes are general obligations of the Metro Nashville government, backed by its full faith and credit.

BofA Securities, Inc served as dealer on the notes. Hilltop Securities Inc acted as municipal advisor.

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