Tag Archives: bonding for new Higgins

Peabody’s general obligation municipal purpose loan nets very low 2.042% interest rate

10 Apr

The following press release was sent to The Eye by Mayor Ted Bettencourt’s office.

From the Mayor’s Office

Mayor Edward A. Bettencourt, Jr., is pleased to announce that the City of Peabody received competitive bids from bond underwriters on Wednesday, April 3, 2013, for $10,533,000 General Obligation Bonds.

Bank of America Merrill Lynch was the winning bidder on the Bonds with an average interest rate of 2.042%.  Bond proceeds will be used to finance Library Building Improvements, Water Treatment Plant Upgrades, Flood Mitigation, as well as to refinance bonds of the City dated February 1, 2005.  The refinancing will generate total savings of $327,327.

Prior to the sale, Moody’s Investors Service, a municipal credit rating agency, affirmed the City’s “Aa1” long-term debt rating. The agency cited the City’s sizable and diverse tax base, unused levy capacity, and stable financial position as positive credit factors.

“We’re obviously very pleased with the results of this bond sale,” said Mayor Bettencourt.  “Peabody’s strong ‘Aa1’ credit rating and the continuing low interest rate market enable us to make critical infrastructure upgrades while saving taxpayers tens of thousands of dollars in interest charges.”

The bids for the bonds were accepted at the office of the City’s financial advisor, First Southwest Company, at 54 Canal Street in Boston, Massachusetts.