Town Of Reading Completes $12.2 Million Bond Issue At 1.086% And Borrows $2 Million Of 1-Year Debt At 0.464%

Press release from the Town of Reading:

December 2, 2021

(READING, MA – December 2, 2021) - Endri Kume, Town Treasurer/Assistant Finance Director, received competitive bids from bond and note underwriters on Wednesday, December 1, 2021 for a 15-year bond issue and a 359-day bond anticipation note issue. Fidelity Capital Markets was the winning bidder on the Bonds with an average interest rate of 1.086 percent and Oppenheimer & Co. was the winning bidder on the Notes with a net interest cost of 0.464 percent.

The Town received a total of nine bids on the Bonds and three bids on the Notes. The Bond proceeds will finance Town & School building energy improvements, the Reading Memorial High School Stadium Turf and Track project, replacement of the Parker Middle School roof, and office
renovations at the Police Station to accommodate the newly created Public Health department. The Note proceeds will be used to finance a portion of the Water Tank project until a final decision on the use of federal ARPA funds is made.

“Thanks to the Finance Committee last winter for encouraging us to take on debt financed projects while we enjoy record low interest rates, and to Town Meeting for recently voting to support these projects” noted Town Manager Bob LeLacheur.

Prior to the sale, S&P Global Ratings, a municipal credit rating agency, affirmed the Town’s AAA underlying long-term debt rating, the highest attainable rating. The agency cited the Town’s very strong economy, strong budgetary performance, strong management with good financial policies, very strong budgetary flexibility, very strong liquidity and very strong debt and contingent
liability position as positive credit factors. The bids for the Bonds and Notes were accepted at the offices of the Town’s Financial Advisor, Hilltop Securities, Inc., at 54 Canal Street in Boston.

This press release was produced by the Town of Reading. The views expressed here are the author’s own.