Darien Completes $113.3 Million Tax-Exempt Financing

Information via Town of Darien

DARIEN, CT — On Thursday, April 6, the Town of Darien successfully priced a $113,365,000 bond offering of tax-exempt General Obligation Bonds and Bond Anticipation Notes (BANs) to fund the upcoming acquisition of approximately 60 acres of property known as Great Island, the renovation of Hindley, Holmes and Royle Elementary Schools and other smaller capital projects.

The offering, which was rated AAA and MIG 1 by Moody’s Investors Service, saw significant competition and attracted bids from 18 different financial institutions. The Net Interest Cost on the $72,415,000 BANs due 2024 was 2.70 percent, and the True Interest Cost for the Bonds due in 2026 through 2053 was 3.67 percent.

"This financing marks yet another exciting step towards acquiring Great Island and making it accessible to our residents. After negotiating the purchase price from the initial bid of $103 million down to $85 million, the Town now expects to close on May 5," First Selectman Monica McNally said in a news release.

"Following this, the Town will embark on some immediate improvements to ensure safe access and begin to develop the operational plans that will allow residents to enjoy this amazing asset. In addition, the Board of Selectmen has established a Great Island Advisory Committee that will meet soon to oversee this important work. This Committee will provide ample opportunities for public input," she added.

James Palen, Chairman of the Board of Finance added, "The financing was a great outcome for the Town of Darien, which benefitted from a month-long rally in UST rates and an equally strong performance in the municipal markets. The demand for the Town’s bonds was significant, attracting many of the top financial institutions to bid and validating the market’s appetite for Darien’s credit. Our Town’s strong financial profile and conservative fiscal management are what allow us to make this once-in-a-lifetime and opportunistic purchase of Great Island and continue our commitment to investing and reinvesting in our town’s schools and services.”