Madison Sells More Than $45 Million In Bonds, Notes

MADISON, CT — Madison sold more than $45 million in bonds and notes Wednesday through a competitive bidding process, securing interest rates that officials said reflect strong demand for the community’s debt.

The town issued $20.67 million in 20-year bonds, which were purchased by Fidelity Capital Markets at an effective interest rate of 3.442 percent. Ten bids were submitted, with rates ranging from 3.442 percent to 3.555 percent, according to town officials.

Madison also sold $24.69 million in one-year bond anticipation notes. BNY Mellon Capital Markets LLC submitted the winning bid with an effective interest rate of 2.579 percent. Seven bids were received, with rates between 2.579 percent and 2.725 percent.

Municipal advisor Munistat Services, Inc. said the town’s high credit rating and strong market reputation helped attract investor interest.

Ahead of the sale, Moody’s Investors Service affirmed Madison’s Aaa long-term bond rating and assigned the same rating to the new bonds. The notes received Moody’s highest short-term rating, MIG 1. In its report, Moody’s cited the town’s location, high resident wealth levels, stable financial operations, and low long-term liabilities and fixed costs as key strengths.

Proceeds from the borrowing will fund the recently completed construction of the new Neck River Elementary School, and renovations at Polson Middle School. This round of financing is the fourth installment in a series of planned issuances for the projects.

Munistat Services of Madison served as municipal advisor, and Shipman & Goodwin of Hartford acted as bond counsel for the transaction.