Featured Municipal Bond in the Market, Week of 01/23/2017: Nashville-Davidson County General Obligation Bonds – $457 Million
This week’s featured bond comes from the State of Tennessee. Nashville-Davidson County Metropolitan Government is issuing general obligation improvement bonds in the amount of $457 million the week of January 23, 2017. These Nashville-Davidson County general obligation bonds are scheduled to be issued as a single series. The purposes and uses of the bond proceeds are to 1) provide long-term financing for public works projects, and 2) retire outstanding commercial paper bond anticipation notes. The Metropolitan Government typically draws on a general obligation commercial paper program to fund general government capital projects. The commercial paper program has a funding capacity of $700 million and, after issuance of these general obligation bonds, will have an outstanding principal amount of approximately $50 million.
The bonds are general obligations. The full faith and credit of the Metropolitan Government is pledged, and the bonds are secured by the unlimited ability to levy ad valorem property taxes. Further details on the purposes, projects, security, and other matters pertaining to these Nashville-Davidson County general obligation bonds can the found in the preliminary official statement, provided by MuniOS.
As of November 2016, the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Area has an unemployment rate of 3.6%, which is 0.6% lower than the same time last year, and 1.0% lower than the national rate.
Provided at left is a quick snapshot of financial characteristics of the Nashville-Davidson County Metropolitan Government as of 06/30/2016, along with the medians for other city governments for 2015-2016, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness). In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendar, city, state, and county pages, and our employment database. These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.