–Refunding Saves $259,723
GLOUCESTER, MA (September 11, 2020) – Mayor Sefatia Romeo Theken today announced that the City received competitive bids from bond and note underwriters on Thursday, September 10, 2020, for an $8,140,000, 20-year general obligation bond issue, a $645,000 359-day taxable general obligation bond anticipation note issue, and a $3,198,400 359-day general obligation bond anticipation note issue.
Robert W. Baird & Co., Inc. was the winning bidder on the Bonds with an average interest rate of 1.400%. Piper Sandler & Co. was the winning bidder on the Series A Taxable Notes with an average interest rate of 0.739% and BNY Mellon Capital Markets was the winning bidder on the Series B Notes with an average interest rate of 0.471%. Bond and Note proceeds will be used to finance various municipal capital projects.
The Refunding Bonds will refund a portion of the City’s September 15, 2009 bond issue and generate total savings of $259,723 over the remaining life of the refunded bonds.
Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, affirmed the City’s ‘AA’ underlying rating. The agency cited the City’s very strong economy, strong budgetary flexibility, and very strong liquidity as positive credit factors.
Mayor Romeo Theken said, “I am very proud of our financial team for all their hard work. Together we have implemented strategies that have resulted in a strong track record of responsible fiscal management. As a result, we have been able to maximize Gloucester’s borrowing and rating rates to save taxpayers’ money.”
The bids for the Bonds and Notes were accepted at the offices of the City’s Financial Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.