City Sells $21M in Bonds, Saves $1.44M

The city of Concord is very pleased to report that it received competitive bids on Jan. 15, for a $20.04 million general obligation bond issue and a one year $1.99 million bond anticipation note issue.

The city received four bids for both issues.

Raymond James & Associates, from St. Petersburg, FL, purchased the $20.04 million bonds at a total interest rate of 2.125 percent.

Century Bank, from Medford, MA, purchased the $1.99 million bond anticipation note at an interest rate of 0.45 percent.

The proceeds will be used for various city capital projects and advanced refunding of bonds originally issued in 2005, 2006 and 2007. As a result of this bond sale, the city will realize premium savings of $766,000 on the new portion of the bond issue, and will realize $678,000 in savings on the refunding portion.

Prior to the sale, Standard & Poor’s Ratings Services affirmed the city’s bond rating of AA+ for existing bonds and issued a rating of AA+ for the GO bond sale. They also issued a rating of SP-1+ for the bond anticipation note sale. The rating report cited the city’s very strong management conditions with strong financial policies and practices, very strong budget flexibility, strong budgetary performance, very strong liquidity and very strong management conditions as part of the basis for their ratings.

Text submitted by the city manager’s office.