Finance board heralds bond sale

By LINDSAY CAREY
STAFF WRITER

The Town of Southington’s Department of Finance released the results of the town’s recent bond sale and sale of bond anticipation notes (BANs).

The $26.92 million bond sale and $12 million sale of bond anticipation notes attracted several bidders, which town officials believe is based on the town’s good performance reviews from the Standard & Poor’s Corporation (S&P).

S&P, a top Wall Street Rating Agency firm, renewed Southington’s rating of AA+/Stable Outlook, which is the second to highest bond rating awarded by the firm.

The Town received seven bids on the bonds and went with William Blair & Company LLC for 2.36 percent.

“The bonds will replace BANs and provide new financing for various school, sewer and capital improvement projects,” said a press release from the town. “The largest part of the issuance is to finance the Town’s Middle School project.”

Five bids came in for the new notes and TD Securities won the bid for the notes at a net interest cost of 0.16 percent.

Town Councilor Michael Riccio praised the results of the sale and attributed it to the S&P rating during a speech at the Southington Chamber of Commerce “State of the Town” dinner.

“That means for one year the Town of Southington will pay $19,000 to grow $12 million that is unbelievable,” said Riccio.

Riccio also gave a timeline for beginning some of the capital projects financed by the BANs.

“Through the approval of our voters and our Council, long overdue capital projects on the town side of government will begin,” said Riccio. “This Spring you will begin to see many improvements to our roads, parks, public spaces, including our buildings and in that vein with the help of our state representatives we will begin to see a new design for our Calendar House in the coming months.”

To comment on this story or to contact staff writer Lindsay Carey, email her at LCarey@SouthingtonObserver.com.

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