CHICAGO - Milwaukeelast week closed on its first commercial paper sale, a $75 million that captured rates of under 1%, in a deal driven by the city's effort to increase its floating-rate exposure and better manage its cash flow for capital spending.

The rate surprised the city's finance officials, who on initial pricing discussions were offering the securities that ranged from 30-day to 270-day maturities in the 1.15% range. The transaction was initially oversubscribed, with 17 firms interested in purchasing all the paper. In filling orders, the city lowered the interest rate to between 0.90% and 0.95% and distributed it among 14 firms that submitted final orders.

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