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Sampson County locks in $2.01 million in savings after bond refunding; S&P upgrades credit rating
Summary
Sampson County refunded its 2015 limited‑obligation bonds on Nov. 20, yielding $2,007,056 in cash‑flow savings over 10 years (about $195,000 annually) and prompting a Standard & Poor's upgrade to AA‑, county financial consultant Andrew Carter told the board.
Sampson County officials on Jan. 5 announced a successful refunding of the county's 2015 limited‑obligation bonds that will produce $2,007,056 in cash‑flow savings over the next 10 years, Andrew Carter of DEC Associates said.
"Money in your pocket," Carter told the Board of Commissioners, summarizing the outcome of the Nov. 20 sale. He said the sale produced roughly a 7% total savings and translated to about $195,000 in annual budgetary savings compared with the prior debt service schedule.
Carter said the sale attracted unusually strong investor demand, which allowed the county to tighten pricing at the sale. He also told commissioners the transaction contributed to an upgrade of the county's credit rating by Standard & Poor's to AA‑, which generally improves future borrowing terms.
County staff and consultants noted the refunding is closed and the savings are locked in. Carter also said the county may have an opportunity for another refunding in roughly the next 18 months and that staff will continue to monitor market conditions.
The board expressed appreciation for staff work and the consultant's presentation. No new action was taken at the meeting beyond receiving the report and acknowledging the results.
