Fayetteville, North Carolina, sold $76.4 million in bonds to refund previously issued securities in support of its Public Works Commission.
The bonds mature between 2025 and 2039, yielding between 2.43% and 3.51%. They received a rating of AA from S&P Global Ratings, Aa2 from Moody’s Investors Service, and AA from Fitch Ratings.
The rating reflects “a very strong financial profile, characterized by very low leverage and consistently robust operating margins,” Fitch analysts wrote.
Proceeds from the issuance will refund bonds the city sold in 2014.
The issuance is the city’s first this year, though it is planning to issue hundreds of millions of dollars in bonds in the coming years. Last September, the city’s Public Works Commission approved a resolution to sell up to $295 million in bonds that will fund capital improvements. Planned debt issuances through 2028 total around $441 million, according to Fitch.
Fayetteville is a city of 200,000 in southeastern North Carolina. The bonds are limited obligations of the city, payable by revenue from its Public Works Commission, which includes water, sewer, and electricity utilities.
Jefferies LLC served as underwriter on the issuance, purchasing the bonds for $87.2 million. The price reflected a premium of almost $11 million. First Tryon Advisors, LLC acted as financial advisor.