Stonington Bond Sale Sees Excellent Turnout On Heels Of Strong Ratings Report

STONINGTON, CT – Town officials have announced positive results from Wednesday’s $20 million bond and $20 million Bond Anticipation Note sales, which yielded competitive interest rates on the strength of solid reviews from S&P Global Ratings, one of the three major Wall Street Rating Agency firms.

“It is great to know that our bonds were in such a high demand,” First Selectman Rob Simmons said in a release, “and this is due in no small part to the excellent job done by our Board of Finance over the years.”

The Town received a total of eight bids on the bonds, with JP Morgan Securities, LLC submitting the winning bid. JP Morgan beat out firms such as UBS, Raymond James and Janney Montgomery Scott, among others. (For more information on this and other neighborhood stories, subscribe to Patch to receive daily newsletters and breaking news alerts.)

The notes were bid on by 5 financial institutions with the winning bid coming from Jefferies. The interest rates bid on the bonds ranged from a winning bid of 2.57 percent to a high bid of 2.74 percent.

The bonds will provide the second wave of financing for the Town’s West Vine Street School and Deans Mill School projects. The winning bid on the Notes was 1.12 percent with a range of 1.12 percent to 1.34 percent.

“The stigma of Connecticut’s fiscal crisis did not hit Stonington,” Simmons said, “and we were able to sell at a price that was even more favorable to the Town’s taxpayers than what we got last year.”

S&P put Stonington’s rating at AA+/Stable Outlook. Within the report, S&P referenced the town's “very strong economy” which is “primarily residential but maintains an important commercial sector that makes up about 14 perecnt of its tax base” and also notes the town’s strong tourism industry.

S&P also mentions the town’s “strong management, very strong budget flexibility, and very strong liquidity,” among the factors influencing the Town’s high credit rating. The “AA+” rating is only one notch away from the highest bond rating (AAA) awarded by S&P.

“In spite of the significant financial struggles of the State of Connecticut, S&P continues to recognize the work town officials have done to maintain stable fiscal health, and as a result, the town is able to issue debt at very low levels,” Stonington’s Financial Advisor Matthew Spoerndle said in a release. “Today’s excellent results were driven by the town’s strong credit rating and prudent financial management of the town,”

The settlement date for the sale is Wednesday, November 1, after which the funds become available to
the town.

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