Municipality of Anchorage Sells $39 Million of Bonds
The Municipality’s sale of $39.345 million of general obligation bonds this week was a huge success and took advantage of the recent low point in the market for interest rates. The bonds were aggressively bid for under a competitive format, and JP Morgan won the bidding for the bonds edging out the second place bidder by less than one hundredth of one percentage point. There were fourteen bids for the bonds with the top eleven bids within nine one hundredths of one percent of each other.
Chief Fiscal Officer, Lucinda Mahoney noted after the sale, “We are extremely pleased with the market reception and desire for our bonds, especially since the recent upgrade of the Municipality’s general obligation to AAA by Standard & Poor’s Ratings Services. Investors continue to reflect confidence in the strength of our local economy and prudent fiscal management. The bonds are rated AA+ by Fitch Ratings and AAA by Standard & Poor’s and have maturities from one to twenty years. We are pleased that that the overall cost of funds for this transaction is approximately 3.37%.”
The bonds represent voter approved debt for capital projects for the Anchorage School District, including funds for educational capital improvements, major building system renewal projects, and capital improvements for career, technical and vocational facilities.
“The success of this bond issue and the Municipality’s recent upgrade from AA+ to AAA by Standard & Poor’s Ratings Services demonstrates the continued investor confidence in the Municipality of Anchorage and the outstanding management of the Municipality’s fiscal affairs over the past several years,” Mayor Sullivan said.