To finance upcoming capital projects, the Town is issuing $10,585,000 in bonds. According to the press release, the received a AAA rating, resulting in a bid with a 3.196% interest rate. The release asserts that residents will see approx $207K in interest savings over the life of the loan:
Town of Southborough, MA $10,585,000 General Obligation Bonds Net 3.196%
The Town of Southborough received competitive bids from bond underwriters on Wednesday, April 25, 2018, for a $10,585,000, 29-year bond issue. Neighborly Securities was the winning bidder on the Bonds with an average interest rate of 3.196%. The Town received a total of 5 bids on the Bonds. Bond proceeds will be used to finance six different municipal projects, including $7,760,000 of the new Public Safety Facility construction.
Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, assigned the highest rating of “AAA” to the Town’s Bonds. The rating agency cited the Town’s very strong economy, strong management with good financial policies, strong budgetary performance, strong budgetary flexibility, very strong liquidity and debt and contingent liability position, and strong institutional framework as positive credit factors. The AAA rating will save the Town and its residents approximately $207,000 in interest costs over the life of the loan.
The bids for the Bonds were accepted at the offices of the Town’s Financial Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.