Sale ensures financing at lowest interest rates possible for city infrastructure upgrades.
Norfolk sold $77,825,000 in taxable General Obligation (G.O.) Refunding Bonds Wednesday, thus achieving a net present value savings to taxpayers of $3 million over the life of the bonds and substantially lowering the interest cost of the city’s existing debt.
Norfolk’s strong financial standing resulted in the lowest true interest cost in its history of long-term bond sales at 1.15%. The refunding ensures that major upgrades to the city’s infrastructure will be financed at the lowest interest rate possible.
Disciplined and prudent fiscal management continues to provide measurable benefits to Norfolk and are a testament to high investor confidence in the health and stability of the city. In addition to the strong demand for Norfolk bonds, the city generated investor interest through its online investor outreach platform Munite.
Norfolk’s credit strength as demonstrated by the reaffirmation of its AAA rating by S&P in advance of the sale, efforts by the city and its team to offer the bonds to the market quickly and strong demand for the bonds enabled the city to execute the bond deal for savings at all-time low interest rates. Norfolk’s taxpayers should take pride in knowing the city is committed to actively managing its debt to minimize its interest expense.
The bonds were sold utilizing a strong syndicate led by Bank of America Merrill Lynch and two co-managers in veteran-owned firm American Veterans Group and Morgan Stanley.