January 14, 2021
For Immediate Release
Town of Shrewsbury, MA $45,690,000 General Obligation Bonds Net 1.418%
The Board of Selectmen have announced that the Town received competitive bids from bond underwriters on Tuesday, January 12, 2021, for a $45,690,000 20-year bond issue. Morgan Stanley & Co, LLC was the winning bidder on the Bonds with an average interest rate of 1.418%. The Town received a total of 10 bids on the Bonds. Bond proceeds will be used to finance costs related to the Police Station construction and SELCO's Fiber to the Home project. With this interest rate, taxpayers will pay $2,089,639 less than presented at Town Meeting on September 29, 2020.
Prior to the sale S&P Global Ratings, a municipal bond credit rating agency, assigned a rating of ‘AAA’ to the Bonds, the highest rating attainable. The rating agency cited the Town’s very strong economy, strong management with good financial policies and practices, strong budgetary performance and flexibility, very strong liquidity, strong debt and contingent liability profile, and strong institutional framework as positive credit factors.
Ms. Beth Casavant, Chair of the Board of Selectmen states, "To maintain our AAA bond rating given the challenges associated with the COVID-19 pandemic is a testament to the strength of our financial management policies and collaborative working relationship across Town departments. This rating translates into millions of dollars in savings for the taxpayers as borrowing occurs for the police station building project. The Board of Selectmen is grateful for the work of Mr. Mizikar and Town staff for their continued efforts on behalf of the community "
The bids for the Bonds were accepted at the offices of the Town’s Financial Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.
For Further information, contact;
Kevin Mizikar, Town Manager
Richard D. Carney Municipal Office Building
100 Maple Ave, Shrewsbury, MA 01545
Tel: (508) 841-8508 email: kmizikar@shrewsburyma.gov
Laurie Gaudet, Treasurer
Richard D. Carney Municipal Office Building
100 Maple Ave, Shrewsbury, MA 01545
Tel: (508) 841-8355 email: lgaudet@shrewsburyma.gov