Reading sells $8,680,000 Bonds at an Interest Cost of 1.26%; Refunding Saves $487,808 for Water Fund
Nancy J. Heffernan, Town Treasurer, received competitive bids from bond underwriters on Tuesday, June 21, 2016 for a $8,680,000 12-year bond issue. FTN Financial Capital Markets purchased the Bonds with an average interest rate of 1.26%. The Town received a total of 6 bids on the Bonds. Bond proceeds will be used to finance the public library, outdoor recreational facility, water, various school improvements and refinance bonds of the Town originally issued November 1, 2007 to join the MWRA. The refunding generated a total savings of approximately $487,808, over the life of the bonds.
Prior to the sale, Standard & Poor’s Ratings Group, a municipal credit rating agency, affirmed the Town’s AAA underlying long-term debt rating, the highest attainable rating. The agency cited the Town’s strong management, strong budgetary performance, very strong budgetary flexibility and very strong liquidity as positive credit factors.
The bids for the Bonds were accepted at the offices of the Town’s Financial Advisor, FirstSouthwest, a Division of Hilltop Securities, Inc., at 54 Canal Street in Boston.