Raleigh Gets OK to sell $238.5 million of bonds, notes

The North Carolina Local Government Commission approved $238.5 million in bonds and notes for Raleigh.

The borrowings, expected to price Feb. 26, consist of $101 million limited obligation refunding bonds that will take out a 2024 variable rate loan and $18.5 million in refunding LOBs to refund a Series 2016 bond. $120 million in new money limited obligation bond anticipation notes will be a private placement.

The $120 million will be used to help complete a 17-story city hall and to support other public safety buildings. The city hall project is aimed at consolidating the city's workers into a single building.

Proceeds from the $101 million bonds will be used to replace with fixed rate bonds the variable rate notes used for the initial costs of the city hall project.

The $18.5 million issue will refund bonds used to pay for a fire station and improvements to a performing arts center.

PNC Capital Markets (PNC) will be the lead underwriter on the $101 million and $18.5 million offerings and will purchase the $120 million BANs. BofA Securities and Truist Securities will co-manage the bond offerings.

DEC Associates is the municipal advisor on the deals. Womble Bond Dickinson (US) is the bond counsel.

Raleigh's outstanding bonds are rated Aa1 by Moody's Ratings, AA-plus by S&P Global Ratings and AA-plus by Fitch Ratings.