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County refinancing $28.5 million in General Obligation Bonds

LIHU‘E — The County of Kaua‘i is moving forward with the issuance of approximately $28.5 million of general obligation bonds with the intent to refund certain outstanding general obligation bonds for economic savings.

The bonds ware expected to be sold through a retail-order period on March 23 and an institutional-order period today. The bonds will pay semi-annual interest and will be sold in denominations of $5,000, or multiples thereof, and will be secured by the full faith and credit of the County of Kaua‘i.

The credit-rating agencies Moody’s Investors Service and Fitch Ratings rated the bonds AA2 and AA, respectively.

Each agency also assigned a stable outlook for the bonds.

The Moody’s credit-rating report cited the county’s “healthy reserve and liquidity levels, large and stable tax base and strong management” as factors that led to the affirmation of the rating.

Fitch noted that “while tourism activity was subject to periodic declines, it has proven resilient over the long term, and unemployment rates were consistently below the U.S. average.”

The Series 2021A bonds are exempt from Hawai‘i and federal income taxes. The Series 2021B bonds will be federally taxable and exempt from Hawai‘i income taxes.

The selling of the bonds will be led by BofA Securities as the underwriter.
Source: The Garden Island

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