Cumberland County is expected to sell $110.4 million of certificates of participation today after the county received rating upgrades from Moody’s Investors Service on Monday.
The certificates will finance school construction, including a library branch, and refund COPs from 1998 and 2000.
The negotiated COP sale is comprised of $22.5 million of Series 2009A certificates with maturities from one to 29 years, and $88 million of Series 2009B certificates with maturities from 10 months to 15 years.
Moody’s raised its rating on Cumberland’s outstanding $91 million of general obligation debt to Aa2 from Aa3, and upgraded its COP rating to Aa3 from A1, which applies to $114 million of outstanding COPs and today’s transaction.
Standard & Poor’s rated the deal AA.
Banc of America Securities LLC and Wachovia Securities LLC will serve as underwriters. DEC Associates Inc. is the county’s financial adviser. Hunton & Williams LLP and the Charleston Group will serve as co-special counsel.
Moody’s said its rating upgrades reflect Cumberland’s population boom as the Army expands its base at Fort Bragg, bringing more jobs to the county and broadening its tax base.
The county plans to sell $175 of GO and COP debt through 2013 to finance projects, Moody’s said.
