On Wednesday, July 11, 2012, the Town’s Bond Committee, which consists of the Board of Selectmen, Town Treasurer and Fiscal Officer, participated in a $37,600,000 General Obligation Bond sale. The Bond Committee also participated in a $12,135,000 Bond Anticipation Note (BAN) sale resulting in an unprecedented interest rate of 0.1693%.
First Selectman Mike Tetreau said, “The successful auction of our bonds and notes is positive news for our taxpayers who will benefit from the Town achieving a historically low interest rate that will help achieve savings as we pay for needed town projects.”
The Bond Committee sold $37,600,000 of general obligation bonds, issue of 2012. Raymond James, which bid 2.5005%, was the winning bid. The Committee unanimously approved this bid by Raymond James, a diversified financial services holding company with subsidiaries focused mainly in investment and financial planning, as well as investment banking and asset management. A total of nine firms bid on the $37,600,000 bond sale; the range of bids was 2.5% to 2.7%.
Find out what's happening in Fairfieldfor free with the latest updates from Patch.
In addition, JP Morgan, which bid 0.1693%, was the winning interest rate bid on the $12,135,000 note sale, making the Fairfield rate the lowest in the Town’s history. A total of ten firms bid on the $12,135,000 note sale; the range of bids was .16% to .25%.
The Bond Committee unanimously approved the BANs funding with JP Morgan. The lower the interest rate, the less the Town has to pay in interest costs for the notes.
Find out what's happening in Fairfieldfor free with the latest updates from Patch.
Fiscal Officer Paul Hiller said, “Once again, the financial markets have spoken with deep conviction on the financial strength of Fairfield. We are extremely pleased with the results and the savings achieved for the taxpayers of Fairfield.”
Frank Cleary, of Pullman & Comley LLC, the Town’s Bond Counsel, and Matthew Spoerndle of Phoenix Advisors, the Town’s Financial Advisor, were also present at the auction. Mr. Spoerndle said, “Today’s results were amazing. Bonding at these record low rates will save Fairfield taxpayers a significant amount of money in the long term. It was truly a reflection of the Town’s excellent credit ratings.”
