The county of Forsyth, North Carolina, issued $127 million in bonds to acquire, construct, and equip the county’s public schools, community colleges, parks, and public buildings.
The bonds were issued in two series. The county sold $29 million in Series 2023A bonds and $98 million in Series 2023B bonds.
The bonds received a rating of Aaa from Moody’s Investors Service and AAA from Fitch Ratings and S&P Global Ratings. The bonds mature between 2024 and 2043, with yields between 2.71% and 4.15%. The coupon rate will be 5% for all securities maturing before 2039, after which it will become 4%.
The rating is supported by “the county’s stable economic base, historically strong operating performance and solid revenue framework, coupled with conservative liability management and solid spending flexibility,” according to Fitch.
The issuance comes as Forsyth county makes improvements to accommodate its growing population. Forsyth is a fast-growing county in North Carolina’s central Piedmont region. The county’s population has grown 11% since 2010, bolstered by growth in its biggest city, Winston-Salem.
That population growth has resulted in a larger tax base. In 2022, the country collected $418 million in taxes, up from $399 million the year prior. The bonds will be general obligations on the country, backed by its full faith and credit.
Hilltop Securities Inc served as lead underwriter on the Series 2023A bonds, purchasing the bonds at a discount of $250,000. Morgan Stanley and Co LLC served as lead underwriter on the Series 2023B bonds, purchasing the bonds at a discount of $222,000.