Officials hail 'exceptional' rates in sale of $25M in town bonds, notes
Updated 12:51 pm, Wednesday, July 9, 2014
The town secured "exceptional" interest rates on the combined sale of more than $25 million in bonds and notes this week, town officials said.
The town sold $11.5 million in bonds to UBS Financial, which submitted a winning bid with an interest rate of 2.856 percent, according to an announcement by First Selectman Michael Tetreau.
The bonds were sold primarily to finance school construction projects, including: $5 million for Riverfield School's renovation/expansion; $3 million for Fairfield Ludlowe High School renovations, $2 million for Osborn Hill School, $1 million for the Fairfield Warde High School roof and $500,000 for Superstorm Sandy repairs.
A sale of $14,030,000 in short-term bond anticipation notes at 0.117 percent interest was made to JP Morgan, Tetreau said.
The town's Bond Committee, which in addition to Tetreau includes Town Treasurer Helen D'Avanzo and Fiscal Officer Robert Mayer, "resulted in the town being able to fund projects with these low rates that will save taxpayer dollars," Tetreau said in the statement.
The town's bonds are accorded the top AAA status by credit-rating agencies, and those "exceptional bond ratings had a great impact" on the low interest rates the town achieved in the sale, Matthew Spoerndle of Phoenix Advisors, the town's financial advisor, said in the statement.