Posted by Justin Rice March 8, 2012 08:43 PM
Peabody received competitive bids from bond underwriters on Wednesday for a $3.2 million 20-year bond issue.
BOSC, Inc. was the winning bidder on the bonds with an average interest rate of 2.38 percent, beating out three other competitive bids.
“We’re obviously very pleased with the results of this bond sale,” Mayor Edward A”Ted” Bettencourt, Jr. said in a statement. “Peabody’s strong ‘Aa1’ credit rating and the continuing low interest rate market enable us to make critical infrastructure upgrades while saving taxpayers tens of thousands of dollars in interest charges.”
Bond proceeds will be used to finance school green repair projects including a new roof at the Welch School and window replacement at the Burke School, as well as renovations to the city’s McVann-O’Keefe Memorial Skating Rink.
Prior to the sale, Moody’s Investors Service, a municipal credit rating agency, assigned a rating of “Aa1” to the city’s long-term debt. The agency cited the city’s sizeable and diverse tax base, satisfactory financial position and manageable debt burden as positive credit factors.
Justin A. Rice can be reached at email@example.com.