The Virginia Public Building Authority expects to sell $318 million of revenue and refunding bonds on Tuesday.
The bonds are rated Aa1 by Moody’s Investors Service and AA-plus by Standard & Poor’s and Fitch Ratings.
The deal includes three parts. Series 2009B will finance $265 million of detention facility projects. Series 2009C is federally taxable and will finance $10 million of improvements to the Wallops Island Flight Facility operated by the National Aeronautics and Space Administration. Series 2009D will refund $43 million of bonds from 2001 and 2002.
The state will pay debt service on the bonds. The General Assembly makes a single debt service payment for the bulk of the commonwealth’s debt, including general obligation and authority bonds.
BB&T Capital Markets and Merrill Lynch & Co. will serve as lead underwriters along with Citi, Wachovia Securities, Morgan Keegan & Co. and Jackson Securities. Christian & Barton LLP will serve as bond counsel and Troutman Sanders LLP will serve as underwriters’ counsel. Public Resources Advisory Group will be the financial adviser.