The District of Columbia (the "District") is expected to come to market with $576 million1 in General Obligation Refunding Bonds (the "Bonds"). The proceeds of the Bonds will be used to refund a portion of each of the District’s General Obligation Bonds, Series 2007A, and General Obligation Refunding Bonds, Series 2007B (collectively, the “Refunded Bonds”), and to pay the costs and expenses of issuing and delivering the Bonds.
The Bonds are general obligations of the District, and the full faith and credit of the District is pledged to the payment of the principal of and interest on the Bonds when due. The Bonds are further secured by a security interest in and lien on the funds derived from a Special Real Property Tax levied annually by the District, without limitation as to rate or amount, in amounts sufficient to pay the principal of and interest on the Bonds.
These bonds are rated "Aa1" by Moody's and "AA" by S&P.2
Traditionally, municipal bonds will be subject to optional call features. Please review the structure on the day of the pricing.
The bond sale offers attractive benefits to individual investors including prices and yields that match those available to institutional investors, the potential for stable income through call dates, and, federal tax-exemption on the bond coupon payments. Bond Counsel is also of the opinion that interest on the Bonds is exempt from all taxation by the District of Columbia, except estate, inheritance and gift taxes.
How to place an order
The offering is expected to price the week of May 15,1 although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders onlineLog In Required or by calling a Fidelity representative at 800-544-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity AlertsLog In Required and see our Municipal Bond New Issue Offerings.