The County of Cape May, New Jersey, issued $92.8 million in bonds to fund various capital improvements.
The bonds mature between 2024 and 2038, yielding between 2.9% and 3.9%. They pay interest at 4%. The securities received a rating of Aa1 from Moody’s Investors Service.
“The Aa1 issuer rating reflects the county’s high wealth, healthy finances, and manageable leverage,” Moody’s analysts wrote. They added that “the county is dominated by the tourism industry but is making efforts to diversify.”
The bond proceeds will finance improvements to the county’s bridges, roads, drainage systems, and school district, among other projects.
County officials have prioritized bridge spending in recent years. In 2022, the county unveiled a Comprehensive Bridge Replacement and Improvement Plan, which called for up to $806 million in spending to repair and replace old bridges. While the county is targeting state and federal funding to cover 70% of the program’s cost, it is prepared to be responsible for up to half of the final price tag, according to the plan. County financing is likely to be funded by bonds.
Cape May is populated by almost 100,000 people along the southern tip of the Jersey Shore. The bonds are general obligations of the county, backed by its full faith and credit.
Citigroup Global Markets Inc served as underwriter on the issuance, purchasing the bonds for $96 million.