Chesapeake will bring about $45 million of bonds to market today in a competitive sale following an upgrade to AA-plus from AA by Standard & Poor’s.
The city expects to issue about $30.6 million of Series 2008A general obligation public improvement and refunding bonds and $14.5 million of Series 2008B tax increment bonds.
Proceeds of the Series 2008A bonds will go to various capital projects and current refund about $16 million of Chesapeake’s outstanding 1994 and 1998 public improvement GOs. The Series 2008B bonds will fund various capital improvement projects in the city’s Greenbrier Area Commercial District and the updating of a conference center.
Financial adviser on the deal is Richmond-based BB&T Capital Markets. Bond counsel is Hunton & Williams LLP.
Standard & Poor’s also rates the city’s $570 million of outstanding GOs AA-plus with a stable outlook. The agency said the upgrade reflected the city’s participation in the “deep and diverse” Hampton Roads regional economy, its strong wealth and income indicators, consistently strong financial position, and moderate overall per capita debt burden with a manageable capital plan.
Moody’s Investors Service rates both series Aa2 with a stable outlook.
The city sold $15.9 million of GO public improvement bonds on May 16, 2006 to Merrill Lynch & Co. at a true interest cost of 4.377%.