ARLINGTON, Va. --- Arlington County on Tuesday, May 21, issued $77 million of Revenue Bonds through the Arlington County Industrial Development Authority (IDA). The County received an average interest rate of 3.6% on the taxable-rate new money portion of bonds.
Proceeds of the sale will be used to finance the County’s acquisition of 2020 14th Street North, a seven-story office building planned for use as a homeless services center and for County offices, to refinance the County’s short term notes issued for Buckingham Village 3, 140 historic units which the County bought in March 2009 to be redeveloped as committed affordable housing units, and to refund prior County revenue bonds for debt service savings.
“Once again the County has benefitted from its high credit ratings and current low interest rates to successfully finance, and refinance, critical County assets,” said County Manager Barbara Donnellan.
The IDA revenue bonds were issued in a mix of both taxable and tax-exempt debt. The taxable rate bonds were issued to fund the 2020 14th Street North and Buckingham Village 3 projects, while the tax-exempt debt was issued to refund older bonds for savings of more than $1.8 million on a present value basis. Morgan Stanley served as senior underwriter for the tax-exempt bonds, while Citigroup was senior underwriter for the taxable bonds.
Ratings on the bonds were AA+ by Standard & Poor’s and AA by Fitch Ratings. Subject-to-appropriation bonds typically carry slightly lower bond ratings than general obligation bonds due to the lack of a full faith and credit pledge by the County.
Arlington’s ability to receive record-low interest rates for its bonds is a reflection of the County’s sound financial management, reflected in its ranking as one of only a handful of jurisdictions across the nation to hold a Triple-AAA rating for its general obligation bonds.
More information is available on the County’s Web site.
Arlington, Va., is a world-class residential, business and tourist location that was originally part of the "10 miles square" parcel of land surveyed in 1791 to be the Nation's Capital. Slightly smaller than 26 square miles, it is the geographically smallest self-governing county in the United States, and one of only a handful with the prized Aaa/AAA/AAA bond rating. Arlington maintains a rich variety of stable neighborhoods and quality schools, and has received numerous awards for Smart Growth and transit-oriented development. Home to some of the most influential organizations in the world -- including the Pentagon -- Arlington stands out as one of America's preeminent places to live, visit and do business.