March 24, 2022 |Breaking News, From the Mayor, News

City of Lynn, MA $12,200,000 Tax-Exempt Bonds Net 3.17%; $4,310,000 Taxable Bonds Net 3.60%

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Michael Bertino, Chief Financial Officer, and Elyse Fannon, City Treasurer, announced that the City received competitive bids from bond underwriters on Thursday, March 10, 2022 for a $12,200,000 30-year tax-exempt bond issue and a $4,310,000 20-year taxable bond issue. Fidelity Capital Markets was the winning bidder on the Tax-Exempt Bonds with an average interest rate of 3.17%. Robert W. Baird & Co, Inc. was the winning bidder on the Taxable Bonds with an average interest rate of 3.60%. The City received a total of 3 bids on the Tax-Exempt Bonds and 2 bids on the Taxable Bonds. Bond proceeds will be used to finance various municipal projects.

“Standard & Poors’ upgrade to ‘A+’ is great news for the City and encouraging affirmation that we continue to head in the right direction,” said Mayor Jared Nicholson. “We have made drastic progress over the last four years to improve our financial standing and outlook. This journey to more stable financial footing, while balancing the local strain of a global pandemic, would not have been possible without the leadership of former Mayor Tom McGee, our CFO Michael Bertino, City Councilors, and the entire team that works for the City. I look forward to leading the City as we make smart, necessary, and substantial capital investments. The right long-term investments coupled with ongoing fiscal discipline is smart financially and allows us to most effectively provide the services that our residents want, need, and deserve.”

Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, upgraded the City’s underlying bond rating to ‘A+’ from ‘A’. The rating agency cited the City’s growing tax base, financial management policies that are increasingly leading to positive budgetary variances and a strong institutional framework, growing local source revenues and improving reserve and cash positions and low debt service carrying charges as positive credit factors.  Furthermore, S&P Global Ratings assigned the ‘AA’ enhanced rating to the Bonds as debt service is secured by the State Qualified Bond Act local state aid intercept program.

Bids for the Bonds were accepted at the offices of the City’s Financial Advisor, Hilltop Securities Inc., at 54 Canal Street in Boston, Massachusetts.

The above press release was submitted to us by Mayor Jared Nicholson’s office.