Alexandria, Virginia, issued $246.6 million in bonds to finance various public improvement projects.
The bonds mature between 2024 and 2053, yielding between 2.56% and 4.176%. They received a rating of AAA from S&P Global Ratings and Aaa from Moody’s Investors Service.
“The Aaa issuer rating reflects the city’s affluent and growing local economy that benefits from its favorable location in suburban Washington DC,” Moody’s analysts wrote.
Projects funded by the bonds may include the redevelopment of a site previously occupied by a shopping mall, capital contributions to the Washington Metropolitan Area Transit Authority (WMATA), and improvements to city parks, buildings, and schools, according to the official statement accompanying the sale of the bonds. WMATA’s metro and bus lines connect Alexandria with Washington.
Soon after the bond sale, the Washington Post reported that Virginia’s general assembly is considering a proposal to move the NBA’s Washington Wizards and NHL’s Washington Capitals to a stadium in Alexandria. The proposal calls for a stadium in Potomac Yard, where a WMATA metro station opened in May.
The reported plan comes amid tensions between Monumental Sports & Entertainment, which owns the Wizards and Capitals, and Washington. Monumental previously asked Washington’s municipal government to fund a $600 million renovation to Capital One Arena, where the Wizards and Capitals currently play. The soonest the teams could move is 2027.
Alexandria is a city of 150,000 people across the Potomac River from southeast Washington. The bonds are general obligations of Alexandria, backed by its full faith, credit, and unlimited taxing power.
BofA Securities, Inc won a competitive bid for the bonds, purchasing them with a discount of $500,000. Davenport & Company LLC acted as financial advisor.