GLOUCESTER – Conor MacCorkle, CFO/Treasurer/Collector, announced that the City of Gloucester received competitive bids from bond and note underwriters on Tuesday, August 20, 2024, for a $49,140,000, 25-year general obligation bond issue and a $10,259,588 380-day bond anticipation note issue. Mesirow Financial, Inc. was the winning bidder on the Bonds with an average interest rate of 3.416% and Oppenheimer & Co. was the winning bidder on the Notes with a net interest cost of 3.166%. The City received a total of 12 bids on the Bonds and 4 bids on the Notes. Bond and Note proceeds will be used to finance various municipal capital projects.
Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, affirmed the City’s ‘AA’ underlying rating and assigned the ‘SP-1+’ rating to the Notes, the highest short-term rating attainable. The rating agency cited the City’s very strong economy, continuous positive financial results, and improving reserve levels as positive credit factors.
“This issuance funded major capital projects across the City, including updates to the doors and windows at O’Maley Middle School and improvements to our City-Wide Information Technology Infrastructure,” said Mayor Greg Verga. “Looking ahead to the major infrastructure projects on the horizon, the results of yesterday’s bond issue and the maintenance of our strong bond rating are more crucial than ever. Both are positive signs for our City.”
The bids for the Bonds and Notes were accepted at the offices of the City’s Municipal Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.
