Durham, N.C. – The County of Durham, North Carolina, announced today that it has completed a $44,635,000 General Obligation Public Improvement bond issue to help fund $51.2 million of school improvements throughout the county. The Series 2014 Bonds were originally priced on May 14, with the closing taking place June 3rd.

According to the County’s Chief Financial Officer, George K. Quick, the County received an exceptionally low interest rate of 2.91% on the 20-year issuance. “The low interest rate we achieved on these bonds was the product of three key factors: the continued credit strength of Durham County and the County’s sound fiscal management, both of which were detailed in reports from the credit rating agencies that rated the bonds, as well as the highly competent and aggressive pricing effort conducted by our senior managing underwriter, Rice Financial Products Company,” Mr. Quick said. “We are extremely pleased with Rice’s efforts in helping us attain the lowest relative interest rate Durham County has ever received on a general obligation bond issuance. With $110 million in orders, the bonds were nearly three times oversubscribed. Rice was active in bringing in a wide variety of new purchasers for these bonds.”

When Rice Financial senior managed another general obligation issue for Durham County on April 12, 2012 ($64.67 million General Obligation Refunding Bonds), it was the first time in more than 10 years that a minority-owned (MBE) investment banking firm had served as a senior managing underwriter on a municipal bond transaction in the state of North Carolina. “I am hopeful our example will lead to greater diversity in the bond issuance process across North Carolina,” he said.

Rice Financial Products Company, a New York based investment banking firm, assisted the County as senior manager on the issue, leading the structuring, pricing and marketing of the bonds along with Bank of America Merrill Lynch.

For detailed information, contact George Quick, Durham County Chief Financial Officer at (919) 560-0043 or gquick@dconc.gov

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