Norwalk scores low interest rate in bond sale

NORWALK — Mayor Harry Rilling announced Wednesday that the city of Norwalk had successfully executed a $30 million municipal bond sale to pay for city, school and redevelopment capital projects.

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The sale of the general obligation bonds was done electronically with bids being received by PARITY online bidding service. The city received eight bids with true interest cost (TIC) varying by only a fraction of a percent, according to the Norwalk Department of Finance.

The TIC for the winning bidder was 2.799428% submitted by Mesirow Financial, Inc.

As points of reference, Norwalk officials noted that two other Connecticut municipalities as well as the state of North Carolina issued general obligation bonds Wednesday and achieved less favorable interest rates: 2.95% for a $7 million issue for Orange, Conn.; 3.11% for a $10 million issue for Portland, Conn.; and 2.86% for a $400 million issue for the state of North Carolina.

The Norwalk bond sale will finance $18.4 million in board of education capital projects, including school construction and district technology, $11 million in city capital projects including road reconstruction and paving; and $600,0000 in urban renewal and redevelopment projects, according to the city's finance department.

According to officials, Norwalk's debt remains highly attractive due to the city's favorable triple-A bond ratings, as reaffirmed by three major credit-rating agencies earlier this month.

Officials estimate that selling the bonds with a triple-A, rather than a double-A rating, will save Norwalk taxpayers $612,000 over the life of the bonds.

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