City of Holyoke Refinances Debt, Saves $151,037 Text Size
Jon D. Lumbra, City Treasurer, received competitive bids from bond underwriters on Tuesday, September 9, 2014 for a $4,482,000, 20-year Series A bond issue and a $3,855,000 2-year Series B refunding bond issue. Hutchinson, Shockey, Erley & Co. was the winning bidder on the Series A Bonds with an average interest rate of 2.68% while Morgan Stanley & Co, LLC was the winning bidder on the Series B Refunding Bonds with an average interest rate of 0.39%. The City received a total of 7 bids on the Series A Bonds and 8 bids on the Series B Refunding Bonds. Series A Bond proceeds will be used to finance high school science labs and parking facility purposes, as well as the purchase of fire trucks. The Series B refunding bonds will generate total savings of $151,037 over the remaining life of the bonds refunded.
Prior to the sale Standard & Poor’s Ratings Services, a municipal credit rating agency, affirmed its ‘A+’ underlying rating on the City’s long-term debt and assigned a ‘AA’ rating to the Series A Bonds, which are enhanced by the Commonwealth of Massachusetts’ State Aid Intercept Qualified Bond Program, and a ‘A+’ rating to the Series B Refunding Bonds. The agency cited the City’s very strong budgetary flexibility, strong budgetary performance, and very strong liquidity as positive credit factors.
The bids for the Bonds were accepted at the offices of the City’s Financial Advisor, First Southwest Company, at 54 Canal Street in Boston, Massachusetts.
Posted on September 17, 2014 by Mayor's Admin