Buffalo, N.Y., is counting on its improved credit to attract investors to a $52.7 million negotiated bond sale Wednesday as it seeks to finance capital projects and refinance old debt.
New York’s second largest city is slated to issue a $27.8 million general improvement serial bonds-2016A transaction and $24.9 million general obligation refunding bonds-2016B. Proceeds will fund capital improvement projects such as rehabbing municipal buildings and refund a portion of various outstanding bonds for interest rate savings. The bonds carry an A-plus rating by Standard & Poor’s and Fitch Ratings with Moody’s Investors Service rating the deal at A1.
Buffalo Comptroller Mark Schroeder said the combined sale is part of a continuing effort to achieve savings through refundings and that A-level ratings signify the city’s momentum a decade after being on brink of bankruptcy. The western New York City’s A1 Moody’s credit rating is up five notches from the near junk-level Baa3 it was assigned from June 2003 to February 2007. Schroeder said a road show in Boston triggered interest from investors.
“Investors outside of western New York are very, very serious on wanting to invest in Buffalo paper,” said Schroeder. “We have done a number of refundings and have yielded either the city or school district over $100 million dollars.”
Ramirez & Co. Inc. and Drexel Hamilton, LLC are lead manager on Wednesday’s deal. The financial advisor is Capital Markets Advisors with Harris Beach as bond counsel.
