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WINSTON-SALEM CITIZEN BONDS TO PAY INTEREST RATES RANGING FROM 3.6 PERCENT FOR THREE-YEAR BONDS TO 5.6 PERCENT FOR 20-YEAR BONDS

 WINSTON-SALEM, N.C., Nov. 19 /PRNewswire/ -- The Citizen Bonds approved Monday night by the Winston-Salem Board of Alderman will pay interest rates ranging from 3.6 percent for three-year bonds to 5.6 percent for 20-year bonds.
 Loris R. Colclough, director of finance for the city, said that the rates were set on Friday by the Government Finance Group of Legg Mason. Colclough added that details on the bonds will be available to investors next week and that the bonds will go on sale at 8 a.m. Monday, Nov. 29 on a first-come, first-served basis.
 The bond sale will be managed by the city's Bondholder Relations Group. Five telephone lines will be set up to handle phone calls beginning Monday, Nov. 22. The telephone number is 910-727-2468.
 Colclough said that Winston-Salem will be the first city in the state to offer these bonds, which are called "citizen bonds" because of the smaller initial investment required. The minimum investment in the bonds is $1,000, compared to usual minimums of $5,000 for most municipal bond issues. No fees or commissions are charged.
 The interest earned will be exempt from federal income tax as well as North Carolina state income and intangibles taxes. Colclough said this raises the effective yield of the bonds. For example, a taxpayer whose federal tax bracket is 31 percent will earn as much net income on a Citizen Bond at 4.5 percent as a person who earns 7.0 percent on a fully taxable investment like a certificate of deposit.
 "While the bonds will be attractive to many investors, they are not appropriate for everyone," Colclough added. "An individual should have a minimum of $1,000 to invest for at least three years before considering these bonds. If someone buys a bond and then sells it before it matures some of the investment could be lost. We encourage investors to talk with a tax adviser before making a purchase."
 The bonds are available with maturities ranging from three years to 20 years. Bonds with maturities of nine years or less require an investment of $1,000 each and pay interest semiannually. Bonds with maturities of 10 to 20 years are bought for smaller amounts and return $1,000 at maturity: however, a $1,000 minimum investment is required. The maximum investment is $25,000.
 Proceeds of the sale will be used to improve streets, walkways, street lighting, bridges, recreational facilities and public safety equipment in Winston-Salem.
 The maturities, interest rates and prices of the bonds were set as follows:
 Maturity Date Interest Rate Price Per Bond
 1996 3.60 pct. $1,000.00
 1997 3.80 pct. 1,000.00
 1998 4.05 pct. 1,000.00
 1999 4.20 pct. 1,000.00
 2000 4.35 pct. 1,000.00
 2001 4.45 pct. 1,000.00
 2002 4.55 pct. 1,000.00
 2003 4.75 pct. 625.34
 2004 4.85 pct. 590.29
 2005 4.95 pct. 556.12
 2006 5.05 pct. 522.90
 2007 5.15 pct. 490.72
 2008 5.25 pct. 459.62
 2009 5.35 pct. 429.66
 2010 5.45 pct. 400.87
 2011 5.50 pct. 376.57
 2012 5.55 pct. 353.40
 2013 5.60 pct. 331.34
 -0- 11/19/93
 /CONTACT: Jerry E. McLeese of McLeese Marketing, 919-759-0195, for the City of Winston-Salem/


CO: City of Winston-Salem ST: North Carolina IN: FIN SU:

MM -- CH008 -- 6621 11/19/93 15:15 EST
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Date:Nov 19, 1993
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