Town of Arlington $12,692,000 Series A Bonds Net 2.08%, $2,205,000 Series B Bonds Net 1.28%, Bond Anticipation Notes Net 0.28%, Refunding Saves $273,075
Stephen Gilligan, Arlington Town Treasurer, announced that the Town received competitive bids from bond and note underwriters on Wednesday, Oct. 10, for a $12,692,000 20-year Series A bond issue, a $2,205,000 Series B refunding bond issue and a $2,426,329 1-year bond anticipation note issue.
J.P. Morgan Securities was the winning bidder on the Series A Bonds with an average interest rate of 2.08%, PNC Capital Markets was the winner on the Series B Bonds with an average interest rate of 1.28% and TD Securities was the winning bidder on the Notes with an interest rate of 0.28%.
The Town received eight bids on the Series A Bonds, six bids on the Series B Bonds and four bids on the Notes. The Series A Bond proceeds will be used to finance various municipal purposes, while the Series B Bonds will refiance bonds of the Town originally issues on Aug. 15, 2003, and the Notes will be used to finance a portion of the Thompson School.
The refunding bonds will generate total savings for the Town of $253,075. The Town will share a portion of these savings with the Commonwealth of Massachusetts as the debt being refinanced is currently receiving 63% reimbursement from the Massachusetts School Building Authority. The net savings to the Town over the life of the bonds is $249,714.
Prior to the sale, Standard and Poor’s Ratings Group, a municipal bond credit rating agency, affirmed the Town’s bond rating of AAA, the highest rating attainable and assigned a SP-1+ to the note issue. The rating agency cited the Town’s low debt burden, very strong household income, and good management policies as positive credit factors.
The bids for the bonds and notes were accepted at the offices of the Town’s financial advisor, First Southwest Company, at 54 Canal St. in Boston.