GLOUCESTER — Mayor Greg Verga and Chief Financial Officer John Dunn announce that the City has purchased more than $38 million in bonds and notes to finance municipal capital projects.
On Wednesday, Aug. 23, the City received 14 bids for a 20-year $13,795,000, general obligation bond issue. Huntington Securities, Inc. was the winning bidder with an average interest rate of 3.533%.
The City also received five bids for a 358-day, $24,745,000 bond anticipation note issue. BofA Securities was the winning bidder at an average interest rate of 3.608%.
Before the sale S&P Global Ratings, a municipal bond credit rating agency, affirmed the City’s AA underlying rating and assigned the SP-1+ rating to the notes, the highest short-term rating attainable. The AA rating is the third highest bond rating available from the credit rating agency, and reflects the City’s high-quality financial condition and low credit risk.
“The City has created a steady, positive financial and economic landscape, and our financial team has ensured we maintain strong fiscal policies, practices, and management,” Mayor Verga said. “As a result, the City is able to receive highly competitive interest rates to the benefit of all taxpayers.”
The bids for the bonds and notes were accepted at the offices of the City’s Financial Advisor, Hilltop Securities Inc., at 54 Canal St., Boston.
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