Metro News Release

For immediate release: June 3, 2009

Metro's largest bond sale in years exceeds expectations

Transit agency saves millions with lower borrowing cost

Metro today announced the sale of its largest bond offering in more than a decade needed to help pay for buses, trains, track repairs and other capital projects. The transit agency agreed to sell $307 million in A-rated bonds yesterday for an average interest rate of 4.69 percent.

“There was very high demand, and the pricing of the bonds was below what we had anticipated,” said Chief Financial Officer Carol Kissal. “We planned for an average interest rate of 5.5 percent. The lower rate of 4.69 percent, and the fact that we did not have to pay for insurance or have a debt service reserve will save Metro millions of dollars.”

Kissal credits Metro’s low debt, recently upgraded credit rating and tax exempt status of bonds for the savings.

“The high demand for the bonds is a reflection of Metro’s strong financial management and the financial strength of the state and local governments that help fund Metro,” said Metro General Manager John Catoe.

Moody’s Investor Services and Standard & Poor’s Rating Services upgraded Metro’s bond rating earlier this year to an A1 and A, respectively.

The bonds will be used to pay off short-term debt and pay for needed capital projects, such as repairs to platforms, tracks and trains.


Media contact for this news release: Candace Smith or Lisa Farbstein at 202-962-1051.

News release issued at 2:13 pm, June 3, 2009.