DALLAS - Phoenix will seek savings with a $290 million refunding of general obligation debt this week.
The negotiated deal through senior manager Piper Jaffray Inc. is expected to price June 4, according to Phoenix chief financial officer Neal Young.
Peter Philippi, managing director at Piper, is lead banker on the deal, with six firms as co-managers.
Public Resources Advisory Group is financial advisor, with Greenburg Traurig as bond counsel.
The refunding on serial bonds maturing through 2027 is expected to produce $15.2 million in present value savings, according to Young.
City officials said they were pleased with ratings of AA-plus from Standard & Poor's and Aa1 from Moody's Investors Service with stable outlooks. As the nation's sixth largest city, Phoenix carries higher ratings than any of the five larger cities, officials noted.
"It's encouraging the credit rating agencies recognize the steps we're taking in Phoenix to practice sound financial management," said Mayor Greg Stanton.
S&P cited Phoenix's "very strong budget flexibility and fund balances, reflecting conservative management practices and prudent planning."
Analysts also highlighted the city's "proactive budget-cutting efforts in response to budget gaps" to maintain very strong fund balances.
"Phoenix worked together to solve a $37 million deficit and reduce it to zero for 2014-15," city manager Ed Zuercher said.
"These economic times over the last few years have been the most challenging times that I've experienced in my long history with the city of Phoenix," senior council member Thelda Williams said in a prepared statement. "But this confirmation of our strong credit rating from S&P and Moody's confirms what we've been experiencing - - Phoenix's finances are strong and our economy is back on the road to recovery."
In praising the city's fiscal restraint, analysts did not soft-pedal the hardships of the past five years and the sluggish recovery.
"The recovery continues in Phoenix's substantial and diverse economy albeit at a slower pace than we previously anticipated," Moody's analysts Dan Steed?and Matthew Jones wrote. "Economic indicators reflect a continuing and slow-building recovery."
Long-term, however, the analysts said they expected Phoenix's growth to again outpace the nation's growth.
