A county in North Carolina issued almost $385 million in bonds to make improvements to its public schools and community colleges and refinance previously issued bonds.
The bonds were issued by Wake County, the most populous in North Carolina. The bonds mature between 2024 and 2041, with yields ranging from 2.22% to 3.82%. Of the issuance, about $310 million will be issued to make education improvements in the county, while roughly $75 million will be used to refinance previously issued notes.
The rating “reflects the county’s strong economy and tax base that will continue to generate healthy revenue growth that will support capital needs and the maintenance of sound reserves,” write Moody’s analysts Lauren Von Bargen and Christopher Coviello.
The bond issuance comes as the county experiences high-levels of growth, spurred on by the expansion of the so-called Research Triangle Park, a collection of research and technology companies in the Raleigh-Durham area. Wake County includes Raleigh and about 25% of the Research Triangle Park area. The county’s school system is the largest in North Carolina and the 15th largest in the United States.
“The proximity of Research Triangle Park, major educational centers, Federal and State agencies, warm climate, and easy access to recreation and cultural events help make the County a part of the fastest growing MSA in the State and among the fastest growing regions in the nation,” according to the official statement accompanying the sale of the bonds.
The bonds are general obligations of the county, meaning that they are backed by the full faith and credit of its taxpayer funding. Interest payments on the bonds will begin on Nov. 1 and will occur every six months thereafter.
First Tryon Advisors, LLC served as financial advisor on the bond issuance.