Raleigh, North Carolina, will privately place $220 million unrated bond anticipation notes with PNC Bank, following approval from the
The proceeds will be used for multiple capital needs for the city's water, wastewater and sewer systems, including installing roughly 15,000 feet of gravity sewer line in the Crabtree Valley. Construction will start this summer and the project will address flooding during heavy rainfall.
It will also include replacing about 26,000 feet of 48- and 54-inch wastewater sewer pipe with 60- and 66-inch pipe primarily along the Neuse River, called the West Neuse Interceptor project.
The interest rate is 0.79 of daily SOFR plus 27 basis points. The bonds mature Feb. 5, 2029. Interest will be paid monthly, with principal repaid at maturity.
The city will have the option to draw down the BAN as it needs.
Raleigh doesn't anticipate a tax or rate increase to pay off the BANs.
The bond counsel is Womble Bond Dickinson LLP.
