Nashville and Davidson County to Sell $787 Million of General Obligation Bonds

By Adam L. Cataldo

The Metropolitan Government of Nashville and Davidson County plans to sell about $787 million of bonds to fund capital improvement projects and retire a portion of the money borrowed under a commercial paper program.

The borrowers plan to sell general obligation improvement bonds in three separate series, according to a preliminary official statement posted Thursday on MuniOS. Series 2024 A will be for about $266.4 million, Series B will be for $205.8 million and Series C will total about $314.5 million.

The Series A bonds mature from 2026 through 2034, Series B from 2035 through 2039, and Series C from 2040 through 2045. All three series will include term bonds, but a date of maturity on those securities has yet to be set, according to the preliminary official statement.

A date of sale and preliminary pricing information wasn't provided. Delivery of the bonds is scheduled for on or about Oct. 30.

A pledge of unlimited ad valorem taxes on all property within the metropolitan government's jurisdiction backs the debt and will be used to pay off bond holders.

The Metropolitan Government of Nashville and Davidson County is home to state capital and the biggest city in Tennessee, with about 712,000 residents. It had approximately $3.21 billion of debt outstanding as of June 30.

Moody's Ratings has assigned the debt a rating of Aa2, and S&P Global Ratings has them ranked AA+. S&P also affirmed its rating on metropolitan government's general obligation bonds, nontax revenue debt and on the local sports authority's outstanding stadium project revenue bonds.

"The AA+ long-term rating reflects our view of Nashville's growing economy, strong financial position, and proactive management team," S&P said. "The rating further reflects our view of the city's gradually improving financial position and reserves."

The bonds are being sold in a competitive sale, with Hilltop Securities is acting as adviser on the deal.

Write to Adam Cataldo at adam.cataldo@wsj.com.

(END) Dow Jones Newswires

October 03, 2024 18:48 ET (22:48 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.