Bond reporter

              NORTH CAROLINA
DEPARTMENT OF STATE TREASURER
Janet Cowell, Treasurer
CALENDAR OF SCHEDULED COMPETITIVE SALES*
October 6, 2009
STATE OF NORTH CAROLINA $ 371,920,000
Refunding, G. O. Bonds
October 13, 2009
COUNTY OF RICHMOND $ 13,000,000
School, G. O. Bonds
October 20, 2009
CITY OF CHARLOTTE $ 20,000,000
Housing, G. O. Bonds ( Taxable)
MARTIN COUNTY WATER & SEWER DISTRICT NO. 2 $ 5,986,000
Water, BAN’s
November 17, 2009
TOWN OF WAKE FOREST $ 10,000,000
Public Improvement & Refunding, G. O. Bonds
December 1, 2009
TOWN OF CHAPEL HILL $ 4,875,000
Refunding, G. O. Bonds
December 2, 2009
COUNTY OF CRAVEN $ 10,000,000
Refunding, G. O. Bonds
December 8, 2009
COUNTY OF ORANGE $ 15,800,000
Refunding, G. O. Bonds
January 12, 2010
CITY OF MOUNT HOLLY $ 1,400,000
Parks & Recreation, G. O. Bonds
____________
* Subject to change.-
BOND
REPORTER
VOLUME XVI OCTOBER 2009 No. 10
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
Janet Cowell, Treasurer
Electronically Published Monthly by
North Carolina
Department of State Treasurer
Albemarle Building
325 North Salisbury Street
Raleigh, North Carolina 27603- 1385
Janet Cowell, State Treasurer
( 919) 508- 5176
T. Vance Holloman, Deputy Treasurer
( 919) 807- 2351
Sharon Edmundson, Director, Fiscal Management
( 919) 807- 2380
Tim Romocki, Director, Debt Management
( 919) 807- 2360
Dora D. Fazzini, Director, North Carolina
Capital Facilities Finance Agency
( 919) 807- 2378
Robert C. Newman, Assistant Director
Debt Management
( 919) 807- 2365
Jim Baker, Assistant Director
Debt Management
( 919) 807- 2370
􀂒 􀂒 􀂒 􀂒
No data contained herein is designed or
recommended as being suitable for use by any
person in reaching a decision with respect to the
purchase or sale of any security. Information to
support such a decision should be obtained from the
issuer or its authorized representatives.
􀂒 􀂒 􀂒 􀂒
TABLE OF CONTENTS
VOLUME XVI No. 10
October 2009
Calendar of Scheduled Competitive
Sales 1
Schedule of Negotiated Sales 3
Notice of Redemption 4
State and Local Unit Debt
Outstanding Balances 5
Scheduled of Bond Elections 5
PROPOSALS
General Obligation Bond 6
Revolving Loans 7- 8
Revenue Bonds 9- 10
Industrial Revenue Bonds 11
North Carolina Medical Care
Commission 12- 13
North Carolina Capital Facilities
Finance Agency 14
Financing Agreements 15- 16
REPORTS OF RECENT SALES
General Obligation Bonds 17
Bond Anticipation Notes 17
Certificates of Participation 18
Revenue Bonds 19
OTHER INFORMATION
Bond Buyer’s Index 20
B
ON
D
REP
ORT
E
R
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 3
SCHEDULE OF NEGOTIATED SALES*
October 14, 2009
COUNTY OF DURHAM $ 64,000,000
General Obligation Refunding
Stephens, Inc.
October 15, 2009
CITY OF RALEIGH $ 150,000,000
Combined Enterprise System Revenue Refunding Bonds
Davenport & Company ( Sr.); Citi; Loop Capital Markets
October 20, 2009
CITY OF CHARLOTTE $ 125,000,000
General Obligation Refunding Bonds, Series 2009B
Wachovia Bank, N. A.; Merrill Lynch, Pierce Fenner and Smith, Inc.
October 21, 2009
NORTH CAROLINA MEDICAL CARE COMMISSION HEALTHCARE FACILITIES $ 198,000,000
Duke University Health System Revenue Bonds
Citigroup Global Markets, Inc. ( Senior Manager)
Merrill Lynch & Co. ( Co.- Mgr.)
Wells Fargo Securities ( Co.- Mgr.)
SunTrust Robinson Humphrey, Inc. ( Co.- Mgr.)
J. P. Morgan Securities ( Co.- Mgr.)
October 27, 2009
COUNTY OF BUNCOMBE $ 8,800,000
General Obligation Refunding
R. W. Baird
November 10, 2009
COUNTY OF PITT $ 35,000,000
Limited Obligation Bonds, Series 2009
Citi ( Sr- Manager)
BB& T Capital Markets
COUNTY OF DARE $ 10,000,000
Certificates of Participation Refunding Bonds, Series 2009
Southwest Securities, Inc.
November 17, 2009
CITY OF THOMASVILLE $ 7,500,000
Combined Enterprise System Revenue Refunding
Wells Fargo Securities
____________
* Subject to change.
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 4
NOTICE OF REDEMPTION
Issuer: $ 100,000,00 City of Charlotte, North Carolina, Variable Rate General
Obligation Bonds, Series 2007
Amount: $ 90,000,000
Redemption Date: October 29, 2009
Redemption Price: 100%
CUSIP Numbers: 161035AA8
Present for payment at: U. S. Bank, National Association, Attn: Corporate Trust Services, Hearst
Tower, 214 North Tryon Street, Suite 2700, Charlotte, North Carolina 28202
Issuer: $ 31,000,000 North Carolina Capital Facilities Finance Agency, Variable Rate
Educational Facilities Revenue Bonds, ( Mars Hill College), Series 2006
Amount: $ 5,775,000
Dated: December 1, 2006
Redemption Date: November 2, 2009
Redemption Price: 100%
CUSIP Number: 65818PEQ8
Present for payment at: U. S. Bank, Corporate Trust Services, 60 Livingston Avenue, 1st Floor – Bond
Drop Window, St. Paul, MN 55107
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 5
STATE AND LOCAL UNIT DEBT OUTSTANDING BALANCES
SEPTEMBER 30, 2009
Amount Population Per Capita
Local Units’ Debt $ 27,761,975,070 — —
State of North Carolina $ 6,874,805,000 9,270,342 $ 741.59
U. S. Public Debt $ 11,909,829,003,512 307,733,899 $ 38,702
􀂒 􀂒 􀂒 􀂒
SCHEDULED BOND ELECTIONS
Municipality/ District/ County Election Date Amount Purpose
City of Greensboro November 3, 2009 $ 20,000,000 Natural Science Center
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 6
GENERAL OBLIGATION BOND PROPOSALS
APPROVED ON OCTOBER 6, 2009
County: Buncombe
Population: 225,609
Amount: $ 5,736,666
Purpose: School
Sale: Negotiated ( Qualified Tax Credit
Bonds)
Term: 15 years ( as of 9/ 22/ 2009)
Underwriter: Robert W. Baird & Co.
Underwriter’s
Counsel: McGuireWoods LLP
Fiscal Agent: US Bank NA
Co- Bond Counsel: Parker Poe Adams & Bernstein
LLP and Martin L. Nesbitt Esq.
District: Martin County Water and
Sewer District No. 2
Population: 4,275
Amount: $ 5,986,000
Purpose: Water
Sale: Negotiated ( USDA)
Bond Counsel: Robinson, Bradshaw & Hinson,
P. A.
Municipality: City of Charlotte
Population: 695,995
Amount: $ 232,000,000
Purpose: Refunding
Sale: Negotiated
Interest Rate: Fixed
Underwriters: Wells Fargo Securities and
Merrill Lynch & Co.
Underwriter’s
Counsel: McGuireWoods LLP
Financial Advisor: DEC Associates, Inc.
Final Maturity: Series 2009B – 2034
Series 2009C – 2027
Bond Counsel: Parker Poe Adams & Bernstein
LLP
County: Buncombe
Population: 225,609
Amount: $ 9,700,000
Purpose: Refunding
Interest Rate: Fixed
Sale: Negotiated
Underwriter: Robert W. Baird & Co.
Underwriter’s
Counsel: McGuireWoods LLP
Escrow Agent: US Bank NA
Verification Agent: Barthe & Wahrman, P. A.
Co- Bond Counsel: Parker Poe Adams & Bernstein
LLP and Martin L. Nesbitt Esq.
County: Durham
Population: 265,670
Amount: $ 70,000,000
Purpose: Refunding
Sale: Negotiated
Underwriters: Stephens Inc.; Merrill Lynch &
Co. and Jackson Securities LLP
Co- Underwriter’s
Counsel: Parker Poe Adams & Bernstein
LLP and the Banks Law Firm,
P. A.
Escrow Agent: First- Citizens Bank & Trust Co.
Verification Agent: The Arbitrage Group, Inc.
Financial Advisor: DEC Associates, Inc.
Bond Counsel: Robinson Bradshaw & Hinson,
P. A.
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 7
REVOLVING LOANS
APPROVED ON OCTOBER 6, 2009
Municipality: Town of Princeville
Amount: $ 310,700
Purpose: Water
Interest Rate: 0%.
Term: 20 years
Loan: State of North Carolina
Municipality: Town of Spindale
Amount: $ 791,974
Purpose: Sewer
Interest Rate: 0%.
Term: 20 years
Loan: State of North Carolina
County: Burke
Amount: $ 573,800
Purpose: Water
Interest Rate: 0%.
Term: 20 years
Loan: State of North Carolina
District: Riegelwood Sanitary District
Amount: $ 200,000
Purpose: Water
Interest Rate: 0%
Term: 20 years
Loan: State of North Carolina
Municipality: City of Kannapolis
Amount: $ 300,000
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
Municipality: City of Rocky Mount
Amount: $ 336,600
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
Municipality: Town of Tryon
Amount: $ 1,430,001
Purpose: Water
Interest Rate: Not to exceed 4%
Term: 15 years
Loan: State of North Carolina
Municipality: Town of Wallace
Amount: $ 10,847,736
Purpose: Wastewater
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
Municipality: City of Whiteville
Amount: $ 498,450
Purpose: Water
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
County: Beaufort
Amount: $ 1,945,300
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
County: Camden
Amount: $ 1,391,100
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
( Continued on page 8)
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 8
REVOLVING LOANS APPROVED ON OCTOBER 6, 2009 ( Continued from page 7)
Municipality: City of Gastonia
Amount: $ 1,326,000
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
Municipality: City of Goldsboro
Amount: $ 7,405,000
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
Municipality: City of Lenoir
Amount: $ 5,828,150
Purpose: Water
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
Municipality: City of Lexington
Amount: $ 330,000
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
District: Roanoke Rapids Sanitary
District
Amount: $ 2,793,800
Purpose: Water Supply
Interest Rate: Not to exceed 4%.
Term: 20 years
Loan: State of North Carolina
Municipality: Town of Selma
Amount: $ 272,367
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
Municipality: Town of Wilkesboro
Amount: $ 6,863,544
Purpose: Wastewater
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
County: Davie
Amount: $ 950,475
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
Authority: Orange Water and Sewer
Authority
Amount: $ 275,400
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
District: Eastern Wayne Sanitary
District
Amount: $ 1,309,600
Purpose: Water Supply
Interest Rate: Not to exceed 4%
Term: 20 years
Loan: State of North Carolina
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 9
REVENUE BONDS
APPROVED ON OCTOBER 6, 2009
County: Greene
Amount: $ 1,459,500
Purpose: Water
Interest Rate: Fixed
Final Maturity: RBAN: No later than
September 1, 2010; RB: No
later than December 31,
2050.
BAN: $ 6,537,000; 2.89%
Structure: USDA commitment to
purchase the bonds on
substantial completion of the
project. RBAN: Interest due
at maturity; RB:
Approximately level debt
service.
Term: RBAN: 1 year; RB: 40 years
Purchaser: Branch Banking & Trust
Company
Revenue Bonds: USDA Rural Development
Registrar: County Finance Officer
Bond Counsel: Womble Carlyle Sandridge &
Rice, PLLC
County: Hyde
Amount: $ 1,420,000
Purpose: Water
Interest Rate: Fixed
Structure: USDA commitment to
purchase the bonds on
substantial completion of the
project. RBAN: Interest due
at maturity.; RB:
Approximately level debt
service.
Final Maturity: RBAN: No later than
February 1, 2011; RB: No
later than December 31,
2051.
Revenue BAN: Financial institution to be
approved by the Secretary.
Revenue Bond: USDA rural Development
Registrar: County Finance Officer
Bond Counsel: Hunton & Williams LLP
Municipality: City of Raleigh
Amount: $ 165,000,000
Purpose: ( Combined Enterprise
System Revenue Refunding
Bonds)
Interest Rate: Fixed
NPV Savings: 3% overall; no series < 2%
Structure: Public Sale. Sale is scheduled
for the week of October 12th
not to conflict with any other
revenue bonds. Past Bonds
have ratings of: Moody’s:
Aa1; S& P: AAA; Fitch: AAA
Final Maturity: Not beyond 2031 ( no
extension of maturities)
Term: Approximately 22 years ( no
extension of maturities)
Underwriters: Davenport & Company, Citi,
Loop Capital Markets, LLC
Underwriters’
Counsel: Parker Poe Adams &
Bernstein, LLP
Trustee/ Registrar/
Escrow Agent: U. S. Bank National
Association ( DTC)
Financial Advisor: DEC Associates, Inc.
Verification Agent: The Arbitrage Group, Inc.
Bond Counsel: Womble Carlyle Sandridge &
Rice PLLC
Municipality: City of Salisbury
Amount: $ 6,000,000
Purpose: ( Combined Enterprise
System Revenue Bonds)
Interest Rate: Fixed ( 4.14%)
Structure: Private sale to Bank of
America, N. A. Registration
and transfer limited to banks,
insurance companies and
similar financial institutions.
Prior revenue bonds publicly
placed ( 2002) were rated A2
by Moody’s and A+ by Fitch.
Term: Approximately 15 years.
Final Maturity: Not beyond 2024.
Purchaser: Bank of America, N. A.
Trustee/ Registrar: First- Citizens Bank & Trust
Company
Financial Advisor: Davenport & Company LLC
Purchaser’s
Counsel: Hunton & Williams LLP
Bond Counsel: Robinson, Bradshaw &
Hinson, P. A.
( Continued on page 10)
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 10
REVENUE BONDS APPROVED ON OCTOBER 6, 2009 ( Continued from page 9)
District: Bay River Metropolitan
Sewerage District
Amount: $ 1,833,000
Purpose: Sewer
Structure: USDA commitment to
purchase the bonds on
substantial completion of the
project. RBAN: Interest due
at maturity; RB:
Approximately level debt
service.
Term: RBAN: RB: 39 years
Interest Rate: Fixed
Final Maturity: RBAN: No later than May 1,
2011; RB: No later than
December 31, 2051
Revenue BAN: Financial institution to be
approved by the Secretary
Revenue Bond: USDA Rural Development
Registrar: District Superintendent
Bond Counsel: Hunton & Williams LLP
District: Contentnea Metropolitan
Sewerage District
Amount: $ 4,095,000
Purpose: Sewer
Term: RBAN: 5 months; RB: 40
years
Interest Rate: Fixed
Structure: USDA commitment to
purchase the bonds on
substantial completion of the
project. RBAN: Interest due
at maturity; RB:
Approximately level debt
service.
Final Maturity: $ 2,401,564 RBAN: No later
than March 1, 2010; No later
than December 31, 2051
Purchasers: RBAN: Financial institution
to be approved by the
Secretary; RB: USDA Rural
Development
Registrar: District Manager
Bond Counsel: Sanford Holshouser
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 11
INDUSTRIAL REVENUE BONDS
APPROVED ON OCTOBER 6, 2009
Issuer: International Paper
Company ( Columbus
County)
Amount: $ 7,004,000 ( Recovery Zone
Facility Bonds)
Purpose: Normal capital expenditures
for equipment including
mill lime kiln system; bark
conveyors; turbine roof
clips; roofing; wet stack
scanner, boiler
improvements; plant
infrastructure and systems
improvements.
Location: Riegelwood
Interest Rate: Not to exceed ( if fixed) 12%
Final Maturity: Not beyond 2033 ( bullet)
If Fixed
Underwriter: JP Morgan Securities, Morgan
Stanley, Bank of America
( Merrill Lynch) or Morgan
Keegan selected by
competitive bidding process.
If Variable
Underwriter/
Remarketing
Agent: JP Morgan Securities, Morgan
Stanley, Bank of America
( Merrill Lynch) or Morgan
Keegan selected by
competitive bidding process.
Tender Agent: The Bank of New York Mellon
Letter of Credit
Provider: Either UBS; JP Morgan
Chase; Bank of America or
Citi selected by competitive
bidding process
Variable or Fixed
Underwriters
Counsel: None ( competitive bid process)
Trustee Registrar: The Bank of New York Mellon
( DTC) or Regions Bank
Bond Counsel: McGuireWoods LLP
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 12
NORTH CAROLINA MEDICAL CARE COMMISSION
APPROVED ON OCTOBER 6, 2009
Issuer: High Point Regional Health
System
Amount: $ 10,000,000
Purpose: Hospital Revenue Refunding
Bond, Series 2009
Location: High Point
Term: Approximately 5 years.
Interest Rate: Variable rate, adjusted
monthly, based on 68% of
One Month LIBOR plus
1.2025%.
Structure: Non- rated, private placement
as a bank qualified loan with
Branch Banking & Trust
Company that is currently
anticipated to close on
October 22, 2009.
Final Maturity: Not to exceed May 31, 2014
Bond Counsel: McGuireWoods LLP
Bank: Branch Banking & Trust
Company
Bank Counsel: Moore & Van Allen PLLC
Borrower Counsel: K & L Gates LLP
Agreed Upon
Procedures: Dixon Hughes PLLC
Bond Counsel: McGuireWoods LLP
Issuer: Cypress Glen Retirement
Community
Amount: $ 7,750,000
Purpose: Retirement Facilities first
Mortgage Revenue
Refunding Bonds
Location: Greenville ( Pitt County)
Term: Approximately 25 years
Interest Rate: Initially Bank- Bought mode,
adjusted monthly.
Final Maturity: Not to exceed December 31,
2034
Structure: Level debt service of
approximately $ 500,000.
Loan has a term of
approximately twenty- five
years, with the Bank having
the ability, upon 180 days
notice, to call the Loan after
five years for payment in full
without penalty, or the Bank
can renew the loan for
additional periods of up to
final maturity in 2034.
Should the Bank call the
loan, the Borrower has the
option to find another bank
qualified loan provider,
change to another permitted
interest rate mode, or the
Bank will pay off the NCMCC
Bond and enter into a taxable
loan or terms agreed to by the
Bank and Borrower. A floating
to fixed rate swap will be
evaluated after closing that
would synthetically fix the
interest rate on the financing.
Non- rated, private placement
as a bank qualified loan with
Branch Banking & Trust
Company that is currently
anticipated to close on
October 13, 2009.
Bank: Branch Banking & Trust
Company
Bank Counsel: Moore & Van Allen PLLC
Borrower’s Counsel: Womble Carlyle Sandridge &
Rice PLLC
Agreed upon
Procedures: Dixon Hughes, PLLC
Trustee: First- Citizens Bank & Trust
Company
Financial Advisor: BB& T Capital Markets
Bond Counsel: Robinson, Bradshaw &
Hinson, P. A.
( Continued on page 13)
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 13
NORTH CAROLINA MEDICAL CARE COMMISSION APPROVED ON OCTOBER 6,
2009 ( Continued from page 12)
Issuer: Cornelia Nixon Davis, Inc.
( d/ b/ a The Davis
Community)
Amount: $ 6,000,000
Purpose: Adjustable Rate Demand
Health Care Facility
Revenue Bonds
Location: Wilmington ( New Hanover)
Term: Approximately 25 years
Interest Rate: Variable ( Initially- weekly)
Structure: New debt will have level
principal of $ 232,000 plus
interest through F/ Y 2034.
When combined with existing
debt service, annual net debt
service payments will range
from approximately
$ 1,500,000 ( F/ Y 2010) to
$ 1,300,000 ( F/ Y 2023), then
declining to approximately
$ 700,000 through F/ Y 2026,
with the final eight years
through F/ Y 2034 declining
from approximately $ 500,000
to approximately $ 300,000.
Limited/ Public Offering in
$ 100,000 denominations, and
integral multiples of $ 5,000
thereafter. Scheduled for
October 13, 2009 and will not
conflict with any other
publicly offered bond. Bonds
will have an S& P rating of
A+/ A1, based upon the Letter
of Credit Provider.
Final Maturity: Not to exceed December 31,
2034.
Underwriter/
Remarketing
Agent: Lancaster Pollard & Co.
Letter of Credit
Provider: Wachovia Bank, National
Association
Underwriter/
Remarketing
Agent Counsel: Parker Poe Adams &
Bernstein LLP
LOC Provider
Counsel: Kilpatrick Stockton, LLP
Trustee/ Registrar/
Paying Agent: US Bank, N. A. ( DTC)
Agreed Upon
Procedures: Larson Allen, LLP
Borrower Counsel: Hogue, Hill, Jones, Nash
Lynch, L. L. P.
Bond Counsel: McGuireWoods LLP
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 14
NORTH CAROLINA CAPITAL FACILITIES FINANCE AGENCY
APPROVED ON OCTOBER 6, 2009
Issuer: Wolfpack Club Student
Housing Foundation, LLC
Amount: $ 23,070,000
Purpose: Student Housing Facilities
Revenue Refunding Bond
Location: Raleigh
Final Maturity: Not to exceed July 31, 2035
Term: Approximately 26 years, with
no extension of maturities.
Interest Rate: Initially variable rate adjusted
monthly, based on 68% of one
month LIBOR + 1.625%.
Structure: Substantially level debt
service of approximately
$ 1,400,000 through FY 2034,
with a final payment of
approximately $ 3,050,000
due at 2035 final maturity,
with no extension of final
maturity beyond July 1,
2035. Loan has a term of
approximately 26 years, with
the Bank having the ability,
upon 180 days notice, to call
the bond after five years for
payment in full without
penalty. Should the Bank call
the loan, the Borrower has
the option to find another
bank qualified loan provider,
or the Bank is required to pay
off the NCCFFA Bond and
enter into a taxable loan on
terms agreeable to the Bank
and Borrower. There is a
floating to fixed rate swap to
final maturity currently in
place on the existing debt
( 100% to 2018, then 75% to
2035) that will remain in
place after the refunding.
Private placement as a bank
qualified loan with Branch
Banking and Trust Company.
The bond issue is currently
anticipated to close on
November 10, 2009.
Borrower’s
Counsel: Paul E. Castelloe, Esq.
Bank: Branch Banking and Trust
Company
Bank Counsel: Moore & Van Allen PLLC
Swap Provider: Wachovia Bank, National
Association
Swap Advisor: Kensington Capital Advisors,
LLC
Bond Counsel: Womble Carlyle Sandridge
and Rice, PLLC
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 15
FINANCING AGREEMENTS
APPROVED ON OCTOBER 6, 2009
Municipality: Town of Holly Springs
Population: 22,500
Amount: $ 6,524,000
Purpose: Recreation ( Community
Center)
Authority: G. S. 160A- 20 Installment
Purchase – Private Placement
Interest Rate: 5.20%
Term: 18 years
Payment: Annual
Lender: Capital Bank
Municipality: Town of Saint James
Population: 3,000
Amount: $ 3,000,000
Purpose: Municipal Building
Authority: G. S. 160A- 20 Installment
Purchase – Private Placement
Interest Rate: 3.08%
Term: 2 ½ years
Payment: Monthly
Bank: First Federal
County: Columbus
Population: 54,046
Amount: $ 5,700,000
Purpose: County Hospital
( Refinancing)
Authority: G. S. 160A- 20 Installment
Purchase – Private Placement
Interest Rate: 3.67%
Term: 7 years
Payment: Semi- annual
Lender: Branch Banking & Trust
Company
County: Jackson
Population: 37,551
Amount: $ 3,312,550
Purpose: Solid Waste
Authority: G. S. 160A- 20 Installment
Purchase – Private Placement
Interest Rate: 4.53%
Term: 15 years
Payment: Semiannual
Bank: SunTrust
County: Warren
Population: 19,388
Amount: $ 610,000
Purpose: School
Authority: G. S. 160A- 20 Installment
Purchase - Private Placement
Interest Rate: 4.56%
Term: 15 years
Payment: Semiannual
Bank: Southern Bank
County: Warren
Population: 19,388
Amount: $ 669,000
Purpose: Buildings
Authority: G. S. 160A- 20 Installment
Purchase – Private Placement
Interest Rate: 4.56%
Term: 15 years
Payment: Semiannual
Bank: Southern Bank
Municipality: Town of Black Mountain
Population: 8,958
Amount: $ 2,100,000
Purpose: Land Acquisition
Authority: G. S. 160A- 20 Installment
Purchase – Private Placement
Interest Rate: 4.92%
Term: 20 years
Payment: Annual
Lender: Branch Banking & Trust
Company
( Continued on page 16)
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 16
FINANCING AGREEMENTS APPROVED ON OCTOBER 6, 2009 ( Continued from page 15)
Municipality: City of Raleigh
Population: 385,507
Amount: $ 35,530,000
Purpose: Municipal Buildings –
Refunding
Amount: $ 14,470,000
Purpose: Parking - Refunding
Authority: G. S. 160A- 20 Installment
Contract – Public Placement
Interest Rate: Variable – Expected Initial
Interest Rate – SIFMA plus 15
bps “ windows” spread;
Maximum rate 12%;
maximum bank bond rate –
25%
Structure: No extension of term or
amount outstanding for the
variable rate COPs. The term
of the refunded short- term
COPs is 25 years and is
consistent with the originally
approved term of the COPs
issuable for the public
facilities projects.
Term: As described in “ Structure”
above and not beyond 2024.
Financial Advisor: DEC Associates, Inc.
Underwriter: Citigroup Global Markets, Inc.
Underwriter’s
Counsel: Parker Poe Adams &
Bernstein, LLP
Remarketing
Agent: Citigroup Global Markets, Inc.
Tender/ Paying
Agent: Regions Bank
Bond Counsel: Womble Carlyle Sandridge &
Rice PLLC
County: Nash
Population: 90,000
Amount: $ 900,000
Purpose: Building
Authority: G. S. 160A- 20 Installment
Purchase – Private Placement
Interest Rate: 3.50%
Term: 5 years
Payment: Semiannual
Bank: NC Eastern Region
County: Rowan
Population: 137,611
Amount: $ 2,750,000
Purpose: Sewer Lines
Authority: GS. 160A- 20 Installment
Purchase – Private Placement
Interest Rate: 4.055%
Term: 10 years
Bank: SunTrust Leasing
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 17
REPORT OF RECENT SALES OF GENERAL OBLIGATION BONDS
Municipality: Town of Fuquay- Varina
Amount: $ 4,170,000
Purpose: General Obligation
Refunding Bonds, Series
2009B
Dated: Date of Delivery
Sold on: September 29, 2009
Rates: 3.00s, 4,170M, 2010/ 2019.
The Bonds will not be subject
to redemption prior to their
respective maturities.
True Interest Cost: 2.2310%
Average Life: 5.26 years
Winning Bidder: Stephens Inc.
Bond Counsel: Sanford Holshouser LLP
Municipality: Town of Fuquay- Varina
Amount: $ 6,500,000
Purpose: General Obligation Public
Improvement Bonds, Series
2009A
Dated: Date of Delivery
Sold on: September 29, 2009
Rates: 2.00s, 1,950M, 2010- 2015;
2.50s, 325M, 2016;
3.00s, 1,625M, 2017/ 2021;
3.25s, 975M, 2022/ 2024;
3.50s, 975M, 2025/ 2027;
4.00s, 650M, 2028/ 2029. The
Bonds maturing on or prior to
August 1, 2019, will not be
subject to redemption prior to
maturity. The Bonds
maturing on August 1, 2020
and thereafter will be subject
to redemption, at the option
of the Town, from any moneys
that may be made available
for such purpose, either in
whole or in part on any date
not earlier than August 1,
2019, at a redemption price
equal to 100% of the principal
amount of the Bonds to be
redeemed, plus accrued
interest to the date fixed for
redemption.
True Interest Cost: 3.1541%
Average Life: 10.28 years
Winning Bidder: UBS Financial Services Inc.
Bond Counsel: Sanford Holshouser LLP
Issuer: State of North Carolina
Amount: $ 371,920,000
Purpose: General Obligation
Refunding Bonds, Series
2009A
Dated: Date of Delivery
Sold on: October 6, 2009
Rates: 3.50s, 2,800M, 2010;
5.00s, 369,040M, 2011/ 2020.
The bonds are not subject to
redemption prior to maturity.
True Interest Cost: 2.2636%
Average Life: 6.904 years
Winning Bidder: JP Morgan Securities Inc.
Co- Bond Counsel: Parker Poe Adams &
Bernstein LLP and The Bank
Law Firm, P. A.
􀂒 􀂒 􀂒 ����
GENERAL OBLIGATION BOND ANTICIPATION NOTES
Municipality: Town of Elm City
Amount: $ 1,100,000
Purpose: Sanitary Sewer Bond
Anticipation Notes
Dated: October 13, 2009
Maturing: July 8, 2010
Sale Date: September 29, 2009
Interest Rate: 3.00%
Winning Bidder: Robert W. Baird & Co., Inc.
Bond Counsel: Womble Carlyle Sandridge &
Rice, PLLC
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 18
REPORT OF RECENT SALE OF CERTIFICATES OF PARTICIPATION
APPROVED ON SEPTEMBER 1, 2009
Municipality: City of Charlotte
Population: 716,874
Amount: $ 139,135,000
Purpose: Permanent financing of
acquisition of Cultural Arts
Facilities by refunding the
COPS Series 2007A
outstanding commercial
paper and funding of
additional improvements.
Rating( s): Moodys: Aa2, S& P: AA+, Fitch:
AA
Dated: September 30, 2009
Underwriter( s): Merrill Lynch & Co. ( Sr. Mgr.);
Wachovia Securities ( Co- Mgr.)
Sold on: BPA — June 16, 2009
Closing — September 30,
2009
Terms: Public sale $ 5,000
denominations.
Interest Rate( s): Fixed — ( yield) if different
Maturities: June 1:
12— 1,945M, 5.00% ( 1.52%);
12— 625M, 4.00% ( 1.52%);
13— 2,690M, 4.00%; ( 1.85%);
14— 2,800M, 4.00%; ( 2.19%);
15— 1,845M, 5.00% ( 2.45%);
15— 1,065M, 3.00% ( 2.45%);
16— 3,035M, 4.00%; ( 2.70%);
17— 1,570M, 4.00%; ( 2.95%);
17— 1,585M, 3.00%; ( 2.95%);
18— 3,265M, 4.00%; ( 3.13%);
19— 3,395M, 4.00% ( 3.29%);
20— 3,530M, 5.00%; ( 3.41%);
21— 3,710M, 5.00%; ( 3.53%);
22— 3,895M, 5.00%; ( 3.63%);
23— 3,710M, 5.00%; ( 3.72%);
23— 380M, 4.00%; ( 3.72%);
24— 4,290M, 5.00% ( 3.80%);
25— 4,505M, 5.00%; ( 3.88%);
26— 4,200M, 5.00% ( 3.96%);
26— 4,200M, 5.00% ( 3.96%);
27— 530M, 4.00%; ( 4.04%);
28— 5,210M, 4.00% ( 4.17%);
29— 2,605M, 4.25% ( 4.25%);
29— 2,810M, 4.125% ( 4.25%);
39— 3,490M, 4.375% ( 4.45%).
$ 31,185,000 5.00% Term
Certificates due June 1, 2034
— Yield 4.37%; $ 36,305,000
5.00% Term Certificates due
June 1, 2039 — Yield 4.45%.
Certificates maturing after
6/ 1/ 19 are callable on or after
6/ 1/ 19 at 100%. Mandatory
sinking fund redemptions of
term certificates June 1,
2030- 2039.
Effective Interest
Cost: 4.427039%
Trustee/ Registrar: U. S. Bank, National
Association ( DTC)
Special Counsel: Parker Poe Adams & Bernstein
LLP
Underwriter’s
Counsel: McGuireWoods LLP
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2008 19
REPORT OF RECENT SALE OF REVENUE BONDS
APPROVED ON SEPTEMBER 1, 2009
Municipality: City of Fayetteville ( Public
Works Commission) Revenue
Bonds, Series 2009B
Amount: $ 36,700,000
Purpose: Water and Sewer
Improvements
Rating( s): Moody’s: Aa3; S& P: AA-Dated:
October 21, 2009
Underwriter( s): Wachovia Bank, National
Association ( Sr.); Citigroup
Global Markets Inc. and
Morgan Keegan & Company,
Inc.
Sold on: BPA — September 17, 2009
Closing — October 21, 2009
Terms: Public sale $ 5,000
denominations.
Interest Rate( s): Fixed — ( yield) if different
Maturities: March 1:
12- 655M, 3.00%; ( 1.29%);
13- 1,045M, 3.50%; ( 1.65%);
14- 1,315M, 4.00%: ( 1.99%);
15- 1,280M, 4.00%; ( 2.26%);
16- 1,805M, 4.00%; ( 2.50%);
17- 1,405M, 4.00%; ( 2.75%);
18- 1,990M, 4.00%; ( 2.91%);
19- 1,600M, 4.00%: ( 3.08%);
20- 1,600M, 5.00%; ( 3.21%);
21- 1,600M, 5.00%; ( 3.35%);
22- 1,600M, 5.00%; ( 3.44%);
23- 1,600M, 5.00%; ( 3.53%);
24- 1,600M, 5.00%; ( 3.61%);
25- 1,600M, 5.00%; ( 3.70%);
26- 1,600M, 5.00%; ( 3.78%);
27- 1,600M, 5.00%; ( 3.86%);
28- 1,600M, 4.00%; ( 4.02%);
29- 1,600M, 4.00%: ( 4.10%);
30- 1,600M, 5.00%; ( 4.07%);
31- 1,600M, 5.00%; ( 4.12%);
32- 1,600M, 5.00%; ( 4.16%);
35- 4,815m, 5.005; ( 4.23%).
Maturities callable March 1,
2019 at par. Mandatory
sinking fund redemptions
March 1, 2033- 2035.
Trustee/ Registrar: The Bank of New York Mellon
Trust Company, N. A.
Feasibility
Consultant: Raftelis Financial Consultants,
Inc. ( Agreed- Upon Procedures)
Financial Advisor: First Southwest Company
Co- Bond Counsel: Womble Carlyle Sandridge &
Rice PLLC and Rand &
Gregory, P. A.
Co- Underwriters’
Counsel: Hunton & Williams LLP and
The Charleston Group
Municipality: City of Fayetteville ( Public
Works Commission)
( Revenue Refunding Bonds,
Series 2009A)
Amount: $ 114,155,000
Purpose Refunding 2003 & 2003A
Synthetic Fixed Note Bonds
Savings: Done to remove insurance and
liquidity – however NPV
savings of $ 3,094,131 or
2.46% approximately
$ 325,000/ years achieved.
Rating( s): Moody’s: Aa3; S& P: AA-Dated:
October 21, 2009
Underwriter( s): Wachovia Bank, National
Association ( Sr.); Citigroup
Global Markets, Inc.; and
Morgan Keegan & Company,
Inc.
Sold on: BPA – September 17, 2009
Closing – October 21, 2009
Terms: Public Offering - $ 5,000
Denominations
Interest Rate( s): Fixed – ( yield) if different from
stated
Maturities: March 1:
10- 6,575M, 4.00%; ( 0.395%);
11- 9,035M, 4.00%; ( 0.870%);
12- 9,310M, 4.00%; ( 1.290%);
13- 9,580M, 4.00%; ( 1.650%);
14- 9,870M, 5.00%; ( 1.99%);
15- 10,265M, 5.00%; ( 2.26%);
16- 10,680M, 5.00%; ( 2.50%);
17- 12,870M, 5.00%; ( 2.75%);
18- 13,380M, 5.00%; ( 2.91%);
19- 7,080M, 5.00%; ( 3.08%);
20- 6,505M, 5.00%; ( 3.21%);
21- 3,320M, 5.00%: ( 3.35%);
22- 1,880M. 5.00%: ( 3.44%);
23- 1,950M, 5.00%; ( 3.53%);
24- 1,855M, 5.00%: ( 3.61%).
Maturities callable March 1,
2019 at par.
Trustee/ Registrar: The Bank of New York Mellon
Trust Company, N. A.
Feasibility
Consultant: Raftelis Financial Consultants,
Inc. ( Agreed- Upon Procedures)
Financial Advisor: First Southwest Company
Co- Bond Counsel: Womble Carlyle Sandridge &
Rice PLLC and Rand &
Gregory, P. A.
Co- Underwriters’
Counsel: Hunton & Williams LLP and
The Charleston Group
NORTH CAROLINA
DEPARTMENT OF STATE TREASURER BOND REPORTER
October 2009 20
BOND BUYER’S INDEX
20 G. O. Bonds
5.35
5.58
5.02 4.96 4.96 4.92
4.70 4.71
4.81
4.65
4.37
4.06
3.80
4.00
4.20
4.40
4.60
4.80
5.00
5.20
5.40
5.60
Nov 1 Dec 4 Jan 8 Feb 5 Mar 5 Apr 2 May 5 Jun 4 Jul 2 Aug 6 Sept 3 Oct 8
DAY
Percent Rate
2008 2009
JANET COWELL
NORTH CAROLINA STATE TREASURER
325 NORTH SALISBURY STREET
RALEIGH, NORTH CAROLINA 27603- 1385
The Bond Reporter is now available for download from the World Wide Web:
http:// www. treasurer. state. nc. us
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