Wednesday, April 14, 2010

County Bond Refinancing Translates Into Savings

The Frederick Board of County Commissioners has approved the sale of General Obligation Refunding Bonds of 2010, Series C, totaling $79,365,000. Of the 14 bids received by financial investment firms, the winning bid went to Citigroup Global Markets, Inc. with a true interest cost of 2.519154 percent.

Proceeds will be used to refund $79,920,000 of 2005 General Obligation Bonds with 2010 – 2020 maturities. The original 2005 General Obligation Bond issue in the amount of $102,320,000 was used to provide funding for the Board of Education, Frederick Community College, roads and bridges, parks, solid waste facilities, water and sewer facilities, a parking deck and various general government facilities.

Board President Jan Gardner said, “We are very pleased with the result of this sale today that translates into savings for our taxpayers. This refinancing will save hundreds of thousands of dollars in interest over the life of the bonds. The impressive number of bids we received is a reflection on the county’s good overall management and strong fiscal stewardship.” The county’s financial advisor, Sam Ketterman of Davenport & Co. LLC, added, “The number of bids and the very low interest rate reinforce the high regard that the municipal market has for Frederick County Government and its bonds.”

The refunding bonds have been rated AA+, Aa2, AA+ by FitchRatings, Moody’s Investors Service and Standard & Poor’s, respectively. For more information, contact the Frederick County Finance Division at 301-600-1117.