FOR IMMEDIATE RELEASE
February 6, 2020
Michael Bertino, Chief Financial Officer
Elyse Fannon, City Treasurer
Tel: (781) 598-4000
City of Lynn, MA $7,580,000 State Qualified Bonds Net 1.295%; Refunding saves $753,903
The City of Lynn announced that it received competitive bids from bond underwriters on Wednesday, January 22, 2020, for a $7,580,000 15-year general obligation state qualified bond issue. BNYMellon Capital Markets was the winning bidder on the Bonds with an average net interest rate of 1.295%. The City received a total of 5 bids on the Bonds. Bond proceeds will be used to fund the purchase of various heavy equipment and will refinance bonds of the City originally issued July 15, 2008 and April 1, 2010.
“With S&P Global Ratings changing the City’s outlook from neutral to positive, we have been able to secure competitive bond bids that will save the City $753,903 over the life of the bonds,” said Mayor Thomas M. McGee. “The Bond rating agencies are recognizing the results of the progress we have made working together over the last two years.”
“I am pleased with the savings achieved with the refinancing,” said Council President Darren Cyr. “I am hopeful that the City can now begin to move forward to replace its aging school buildings.”
“It’s been exciting to be a part of the financial team, assisting the Mayor and Council in improving the City’s financial position,” said Chief Financial Officer Mike Bertino. “I am grateful for this opportunity to be a part of Lynn’s continued success.”
Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, affirmed the City’s ‘A-’ underlying bond rating. The rating agency cited the City’s very strong liquidity, very strong debt and contingent liability position, and strong institutional framework as positive credit factors. Furthermore, S&P Global Ratings assigned the ‘AA’ enhanced rating to the Bonds as debt service is secured by the State Qualified Bond Act local state aid intercept program.
The bids for the Bonds were accepted at the offices of the City’s Financial Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.