HomeMy Public PortalAboutTOL NR 2019-06-27 Bond Sale Savings
Town of Leesburg
News Release
For Immediate Release
June 27, 2019
Media Contact:
Betsy Arnett, Public Information Officer
barnett@leesburgva.gov 703-771-2734
Town of Leesburg Saves $1.4 Million by Refinancing Bonds
Leesburg, VA (June 27, 2019) – Town of Leesburg officials announced that the Town has
refinanced $12.4 million in Series 2009 General Obligation (G.O.) Build America bonds through
a competitive sale. The new Series 2019 G.O. Refunding Bonds were purchased by J.P. Morgan
Bank at a total interest cost of 1.92%. As a result of the refinancing, which did not extend the
life of the bonds, the Town will save $1.44 million in interest payments. The interest rate of the
2009 bonds averaged 4.5%.
“In my 36 year career in public finance, I cannot remember ever financing below 2%,”
commented Clark Case, Leesburg’s Director of Finance and Administrative Services. “The
Town’s strong credit ratings and favorable bond market conditions made this successful
refinancing possible.”
Earlier this month, Town officials met with the major bond rating agencies and obtained
reaffirmed AAA ratings with a Stable Outlook from Fitch Ratings, Standard & Poor’s, and
Moody’s. The rating agencies cited a very strong economy, very strong management, budgetary
flexibility, and overall liquidity of the Town in their reports. AAA ratings with a Stable Outlook is
the highest rating possible for municipal governments.
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