STRONG TURNOUT FOR SUFFIELD BOND SALE ON HEELS OF IMPROVED RATINGS REPORT
SUFFIELD, Conn. – Suffield First Selectman Melissa M. Mack announces positive results from its $9.1 million bond sale yielding competitive interest rates on the strength of solid reviews from S&P Global Ratings, one of the three major Wall Street Rating Agency firms. Matthew Spoerndle, Senior Managing Director of Phoenix Advisors and Suffield’s Financial Advisor notes, “S&P recognized the continued efforts of leadership to improve Suffield’s fiscal health, and as a result, the Town was able to issue debt at very low levels. The positive outcome was driven by the strong credit rating and prudent financial management of the Town.” The bonds will finance Suffield’s multi-year road improvement program.
Suffield received a total of eight bids on the bonds, Janney Montgomery Scott LLC submitting the winning bid of 2.73%. The tightly contested sale netted offers from the top four firms within a range of only 2 basis points (0.02%). High bid was 3.42%. Janney bested firms Morgan Stanley, FTN Financial Capital Markers, Piper Jaffray, Roosevelt & Cross, among others. The settlement date for the sale is December 28, 2016, after which the funds become available to the Town.
While S&P’s rating for Suffield held steady at AA+, the Town’s outlook improved from stable to positive for better positioning and a potential upgrade to the coveted AAA rating on the next bond issuance. S&P referenced Suffield’s “strong management,” expectation of the “tax base to remain very diverse,” and proximity to Springfield, Hartford and Bradley International Airport as factors influencing the high credit rating.
“It is great to know that our bonds were in such high demand,” said Mack. “By getting the sale in before the end of the year, the Town was able to take advantage of historically low interest rates and present a bond package that was favorably received. I am grateful to our Finance Director, Board of Finance and Financial Advisor, Phoenix Advisors, LLC for recommending the money saving approach to the sale.”
For additional questions, contact Kim Worthington at (860) 668-3838.