Madison Sells Bonds, Maintains AAA Bond Rating From Moody's

News release from the Town of Madison:

MADISON, CT — On Thursday, December 5th the Town of Madison sold $25,715,000 in 20-year bonds and $30,000,000 in one-year bond anticipation notes through a competitive bid process. The bonds were purchased by TD Securities at an effective interest rate of 3.359%. The Town received a total of fourteen (14) binds on the bonds with rates ranging from 3.359% to 3.493%. The notes were purchased by Jefferies LLC at an effective interest rate of 2.803%. The Town received a total of eight (8) bids on the notes with rates ranging from 2.803% to 3.207%.

According to the Town’s municipal advisor, Munistat Services, Inc., the Town’s debt is attractive to municipal bond investors because of the Town’s superior bond rating and strong name in the market.

In connection with the sale, Moody’s Investors Service affirmed the Town’s “Aaa” long-term bond rating and applied the same rating to the new bonds. Moody’s gave the notes its highest short-term rating of “Moody’s Investment Grade 1” or “MIG 1”. In its rating report, Moody’s listed the Town’s location, strong resident wealth, consistent financial operations and low long-term liabilities and fixed costs, as credit strengths.

Proceeds of the bonds will be used to finance the Town’s new Neck River Elementary School and the renovation of the former Academy school to a Community Center. Proceeds of the notes will be used to finance the Neck River Elementary School. The bonds and the notes are the third installment of a series of debt issuances planned for those projects.

The Town was assisted in the sale by Munistat Services, Inc. of Madison as municipal advisor and Shipman & Goodwin of Hartford as bond counsel.