WEST HARTFORD — Mayor Shari Cantor recently announced the sale of $19.9 million in bonds issued to refinance bonds previously issued bonds by the Town.
As a result of the refinancing, the Town will realize a total of $1.85 million in savings over the next six fiscal years. The present value of the future savings totals approximately $1.78 million or 8.0 percent of the face value of the prior bonds. The savings will reduce the remaining debt service payments associated with bonds issued to finance the Blue Back Square Project.
Due to the Town’s strong name in the municipal bond market and superior credit ratings, the Town received orders for up to $51.3 million in bonds or more than 2.5 times the amount of bonds being offered.
“We were very fortunate to realize this level of savings; it significantly exceeded our initial expectations. The Town’s solid AAA bond rating coupled with excellent market timing resulted in a highly successful sale,” stated Peter Privitera, the Town’s Director of Financial Services.
The Town was assisted in the sale by Bill Lindsay of Hilltop Securities Inc., who served as municipal advisor, and Matthew Ritter of Shipman & Goodwin, who served as bond counsel. The new bonds were underwritten by Raymond James Inc. of New York, NY.