HomeMy Public PortalAboutTOL NR 2020-12-10 Bond Refinancing
Town of Leesburg
News Release
For Immediate Release
Thursday, December 10, 2020
Media Contact:
Betsy Arnett, Public Information Officer
barnett@leesburgva.gov 703-771-2734
Town of Leesburg Takes Advantage of Historically Low
Interest Rates in Bond Refinancing
Town will save more than $1 million in interest payments over 10 years.
Leesburg, VA (December 10, 2020) – Town of Leesburg officials announced that the town
refinanced $13.5 million in Series 2011 General Obligation (G.O.) bonds through a competitive
sale on Tuesday, December 8, 2020. The new Series 2020 G.O. Refunding Bonds were
purchased by Fidelity Capital Markets at the total interest of cost 0.405%. As a result of the
refinancing, the Town will save $1.05 million in interest payments over the remaining ten years
of the bonds’ life.
“In my career, I’ve never seen interest rates this low for this long a bond issue. The refunding
will benefit both the General Fund and the Utilities Fund.” commented Clark Case, Leesburg’s
Director of Finance and Administrative Services.
The bond refinancing creates a budgetary savings in the Fiscal Year 2021 General Fund Budget
of $3.7 million, the result of pushing the bond repayment costs into future years. The final
maturity of the debt will remain the same.
Earlier this month, Town officials met with the major bond rating agencies and obt ained
reaffirmed AAA ratings with stable outlooks from Fitch Ratings, Standard & Poor’s, and
Moody’s. The rating agencies all cited the town’s diverse tax base, population growth,
continued economic development, and very strong management in their findings. AAA rating
with a stable outlook is the highest rating possible for municipal governments.
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