Thursday, February 19, 2015

Town of Franklin $6,920,000 Bonds Net 1.931%; Refunding saves $603,906

James Dacey, Town Treasurer, announced that the Town received competitive bids from bond underwriters on Wednesday, February 18, 2015, for a $6,920,000 12-year bond issue. Janney Montgomery Scott LLC was the winning bidder on the Bonds with an average interest rate of 1.931%. The Town received 5 bids on the Bonds. Bond proceeds will be used to refinance bonds of the Town originally issued March 15, 2006 and April 1, 2007.

The refinancing will generate total savings of $603,906 over the remaining life of the Bonds.

Prior to the sale, Standard and Poor’s Ratings Services, a municipal credit rating agency, affirmed the Town’s AA+ bond rating. The rating agency cited the 

  • Town’s very strong economy
  • strong management with good financial policies 
  • strong budgetary flexibility
  • very strong liquidity
  • very strong debt and contingent liability position 
  • and strong institutional framework 

as positive credit factors

The bids for the Bonds were accepted at the offices of the Town’s Financial Advisor, First Southwest Company, at 54 Canal Street in Boston, Massachusetts.

Franklin Municipal Building in better weather
Franklin Municipal Building in better weather

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