BRADENTON, Fla. – A North Carolina utility saw low prices for its bonds amid a record-breaking decline in long-term yields this week.
The Fayetteville Public Works Commission auctioned $114.4 million of 25-year revenue and refunding bonds on Wednesday.
Of the eight bids submitted, Wells Fargo won the deal with a bid of 2.49%, according to Dwight Miller, PWC's chief financial officer.
"I'm very pleased with the results," Miller said, adding that the pricing was lower than the utility saw two years ago.
The PWC's prior deal in 2014 saw seven bidders, with Piper Jaffray submitting the winning bid at 3.307%.
Miller also said this week's results surpassed expectations on the $41 million refunding portion.
The refunding saw net present value savings of 10.27% or $7.05 million, compared to projections of 6.8% or $5.22 million prior to the sale.
The 2016 bonds priced to yield from 0.63% with a 5% coupon in 2017 to 3.07% with a 3% coupon in 2041.
The bonds are rated Aa2 by Moody's Investors Service and AA by Fitch Ratings and S&P Global Ratings.
The PWC was advised by First Tryon Advisors.
Womble Carlyle Sandridge & Rice LLP and the Charleston Group were co-bond counsel on the deal.