City Secures Competitive Rate for CIP Bonds - Carlo DeMaria

City Secures Competitive Rate for CIP Bonds

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Mayor Carlo DeMaria, along with City Auditor Rich Viscay and City Treasurer Domenic D’Angelo were pleased to announce that the City received competitive bids from note underwriters on Tuesday, June 4, 2013, for the $5,500,000, 270-day Note that will go toward projects included in the FY13 Capital Improvement Plan, such as road repairs and the renovation of Glendale Park.

Out of four bidders, Eastern Bank was the winner for all the Notes, with a net interest rate of 0.204%.  The Mayor and his financial team were extremely pleased with such a low interest rate.  “The fact that the City received an interest rate of lower than 1% on such an important bond speaks volumes of our financial stability,” stated the Mayor.

Prior to the sale, Moody’s Investors Service, a municipal credit rating agency, assigned the highest rating of “MIG-1” to the Notes. Moody’s maintains an Aa3 rating on the City’s outstanding bonds. The rating agency cited the City’s satisfactory financial position, bolstered by healthy reserve levels, a sizable tax base and a manageable debt profile, as positive credit factors.

The bids for the Notes were accepted at the office of the City’s Financial Advisor, First Southwest Company, at 54 Canal Street in Boston, Massachusetts.

-Original story published Thursday, June 20th, Everett Leader Herald News Gazette

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