City’s Bond Sale – Positive Outcome
Annapolis, MD (6-29-12) Mayor Joshua J. Cohen announced Annapolis will save more than $350,000 as a result of the City’s recent bond sale and refunding.
The City received ten bids from national and regional banking and underwriting firms for the sale of the Public Improvements and Refunding Bonds, 2012 Series.
The winning bid of 2.344% was submitted by Bank of America Merill Lynch. The low interest rate allowed the City to realize debt service savings for the refunding of more than $357,000 of which $253,708 will be realized in fiscal year 2013.
“I’m thrilled that we saved more than we expected to,” Mayor Cohen said. “This will allow us to continue to address key infrastructure needs despite the challenging economic climate.”
Last week, all three of the major bond rating agencies affirmed the City’s outstanding ratings and released a stable outlook for new general obligation bonds. The City pursued the authorization to take advantage of lower interest rates. While the City was authorized for $21.5 million, $11.645 million was refunded.