Bond Sale Rated Success, Manager Says

NARRAGANSETT, RI — Tuesday's bond market went well for Narragansett, according to Town Manager James Manni's office.

The Town sold $6.1 million in general obligation bonds, which were issued to pay for upcoming construction and road projects.

According to a press release drafted by Steve Maceroni, financial advisor, the "bonds were well received in the market" and attracted nine bids.

"The winning bid was submitted by a syndicate led by Piper Jaffray & Co. with a very attractive interest rate of 1.977 percent for the 20-year tax-exempt bonds," Maceroni indicated. "The bid was well below the Town’s projected interest rate of 3 percent."

He attributed the response to the Town's solid financial rating from Standard and Poor's and Moody's.

"In connection with the bond sale, the Town’s ratings of Aa2 and AA+ were affirmed by Moody’s Investors Service and S&P Global," he said. That rating created strong demand for the securities and resulted "in a favorable interest rate," he said.

"The Bonds will finance important improvements to Town roads, the Town’s public safety building and the Narragansett Athletic Complex," he said.