(Washington, DC) - District of Columbia Chief Financial Officer Dr. Natwar M. Gandhi today announced that the city successfully marketed and sold general obligation (G.O.) bonds totaling almost $480 million. Berkshire Hathaway insured the majority of the bonds with favorable pricing.

Of the total, $327.9 million of G.O. Bonds was newly issued debt. The weighted average interest cost (including bond insurance and issuance costs) was 4.97 percent. Merrill Lynch was the lead underwriter.

"I am gratified that the District of Columbia is so well received by investors, especially when we consider the financial pressures facing other cities, states and municipalities," said Gandhi.

"There was very strong interest and demand for these bonds," said Lasana K. Mack, District of Columbia treasurer. "Our credit continues to be viewed very favorably by investors."

The city took advantage of current favorable interest rates by issuing $151.6 million in G.O. refunding bonds. This refunding will save $5.5 million in debt service in present value terms over 20 years. The weighted average interest cost, including bond insurance and issuance costs, was 4.64 percent. 

The lead underwriter on the refunding bonds was Siebert Brandford Shank, with Merrill Lynch and Raymond James serving as co-senior managers.