FOR IMMEDIATE RELEASE
Contact: Lucinda Mahoney
Chief Fiscal Officer343-6610
Date: September 11, 2012 (907)-343-6610
MUNICIPALITY OF ANCHORAGE SELLS $92 MILLION OF BONDS
ACHIEVES $3.4 MILLION SAVINGS FOR TAXPAYERS
80% of the Bonds were Sold to Retail Investors
The Municipality’s sale of $92.290 million of general obligation bonds this week was a huge success and took advantage of historic low interest rates. Retail orders consumed about 80% of the total amount of bonds issued.
Chief Fiscal Officer, Lucinda Mahoney noted, “We are extremely pleased with the market reception to our bond issue, especially since so many of the bonds were sold to retail investors. Alaskan and National retail investors continue to reflect confidence in and the strength of our local economy. The bonds are rated AA+ by Fitch Ratings and AA+ 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 2.441%”
Refunding bonds in the amount of $54.295 million were issued to refund outstanding General Purpose and School bonds for a savings to the taxpayers of $3,439,483.
The balance of $37.995 million of bonds represent voter approved debt for capital projects for the Municipality and the Anchorage School District, including funds for roads, public safety, fire protection, parks and recreation, transportation and educational capital improvements.
“The success of this bond issue and the Municipality’s recent upgrade from AA to AA+ by Standard & Poor’s rating agency demonstrates the continued investor confidence in the Municipality of Anchorage and the outstanding management of the Municipality’s fiscal affairs currently and over the past several years,” Mayor Sullivan said. “I congratulate the MOA’s Chief Fiscal Officer Lucinda Mahoney and her staff for an extremely successful bond issue which saved the taxpayers $3.4 million in future debt service.”