Press launch from the City of Fairfield:
Might 22 2020
FAIRFIELD, Conn. – City officers introduced distinctive outcomes from the City’s current $18.865 million refunding bond sale, which yielded aggressive rates of interest on the energy of stable evaluations from Moody’s Buyers Service, one of many three main Wall Road Ranking Company corporations.
“This is superb information for taxpayers within the City of Fairfield,” stated First Selectwoman Brenda Kupchick, “We had been capable of benefit from the low rate of interest atmosphere and refinance bonds for important budgetary financial savings shifting ahead.”
Because of the refinancing, the City will decrease its curiosity prices by over $1.7 million unfold over the subsequent 12 years. The City obtained a complete of twelve bids on the Bonds, with Robert Baird & Co. submitting the successful bid. Baird beat out corporations comparable to Janney Montgomery Scott who was the second place bid, Mesirow Monetary, Roosevelt & Cross, and JP Morgan, amongst many others.
The rates of interest bid on the bonds ranged from a successful bid of 1.72% to a excessive bid of 1.85%. It was a tightly contested aggressive sale. The unfold, or distinction, between the successful bid and the final place bid was below 13 foundation factors (zero.13%). The bonds will refinance bonds initially issued in 2012. The proceeds of that subject had been initially used to finance plenty of capital initiatives together with Fairfield Woods Center Faculty, Sherman faculty, Fairfield Warde Excessive Faculty, street enhancements and plenty of different public enchancment initiatives.
“Contemplating the intense municipal market volatility that we skilled in mid-March, to name these outcomes distinctive can be an understatement,” stated Matthew Spoerndle, senior managing director of Phoenix Advisors and Fairfield’s municipal advisor. “It’s totally uncommon to obtain this many bids on a bond sale and for the City to save lots of much more than we had anticipated earlier than the market collapse, that is superb!”
Moody’s affirmed Fairfield’s ranking at Aaa, which is the best ranking obtainable. Throughout the report, Moody’s referenced the Cities “massive and rich tax base that can stay sturdy over the long run” and “stable and constant fiscal place” whereas additionally noting “manageable long-term debt and pension obligations” as credit score strengths. The additionally included a Steady outlook on the City “pushed by
our expectation that the city’s sturdy wealth metrics, sizeable economic system and efficient administration will enable it to keep up credit score high quality regardless of the uncertainty of the declining nationwide economic system.”
The bonds settled on Might 7, 2020.
For additional questions on the bond refunding, contact Matthew Spoerndle at email@example.com or 203.878.4945.
This press launch was produced by the City of Fairfield. The views expressed listed here are the writer’s personal.