Henrico sells municipal bonds to residents

Published: May. 13, 2016 at 6:06 PM EDT
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HENRICO, VA (WWBT) - Henrico is selling municipal bonds to give residents an opportunity to participate as investors.

The county is planning on issuing $125 million in water and sewer revenue bonds on May 16 and 17 to support improvements to its public utility system, Deputy County Manager for Administration Joseph P. Casey said in a press release.

Bonds will be valued at $5,000 each. These type of bonds are usually sold to large customers, such as financial institutions, mutual funds, and insurance companies. They are also usually sold in bundles.

"Henrico has heard periodically from residents who would like to buy the county's bonds because they believe Henrico bonds are a sound investment that also helps the community," said Gene H. Walter, director of the Department of Finance. "We have worked with our team of underwriters and are pleased to offer this opportunity."

The county says orders accepted May 16 will only include retail buyers, such as individual investors and residents. Orders accepted on May 17 will include both institutional and retail buyers.

The Board of Supervisors approved the sale on Feb. 23. Henrico officials say the sale of $125 million in water and sewer revenue bonds will feature $79 million in new bonds and $46 million in refinanced bonds. The bonds will be backed by Henrico's public utility rates and fees, according to a press release.

Henrico officials say their water and sewer bond ratings are AAA, AAA, and Aa1 from the Fitch, Standard & Poor's, and Moody's ratings agencies.

Those interested in purchasing bonds or getting more information should call a member of Henrico's bond underwriting team: Raymond James at (804) 225-1129; BB&T Securities at (804) 782-8883; Davenport & Co. at (804) 780-2132; and J.P. Morgan at (855) 231-8873.

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