Bonds to finance construction of Cabarrus County’s jail housing unit went on the market Thursday at a rate of 4.94 percent for the $58.8 million bond sale.
Cabarrus County officials made a choice to wait to sell these bonds until the market was more favorable. With guidance from the county’s underwriters, Cabarrus County watched the market to select the best date.
The 4.94 percent interest rate is only .30 percent higher than the rate just prior to the shift in the economy. “We wanted to be prudent and wait for the right opportunity to sell,” said Pam Dubois, Cabarrus County deputy manager and finance director.
“This is a great rate, and we wanted to get ahead of other local governments selling their bonds, since there is so much backed up demand in the market.”
The bonds for the jail housing unit will be paid by semi-annual payments over the next 20 years. Cabarrus County will pay interest only for the first two years. The payment for this fiscal year will total $1.4 million.
The 580-bed jail housing unit is under construction behind the newly opened Cabarrus County Sheriff’s Administration Building on Corban Avenue in downtown Concord.