MUNICIPALITY OF ANCHORAGE SELLS $61 MILLION IN BONDS
Half of bonds were sold to retail investors
Contact: Sarah Erkmann
ANCHORAGE- The Municipality’s sale of $61.64 million of general obligation bonds last week was a huge success and occurred at a two-month low point in the marketplace. Retail orders consumed about half 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 most of the bonds sold to retail investors were sold to Alaskans. Alaskan retail investors continue to reflect Alaskan’s confidence in and strength of our economy. The bonds are rated AA+ by Fitch Ratings and AA by Standard & Poor’s and have maturities from one to twenty years. We also are fortunate in that the overall cost of funds for this transaction is approximately three percent.”
Refunding bonds in the amount of $28.31 million were issued to refund outstanding school bonds for a total savings to taxpayers of $1.9 million.
The balance of $33.33 million of bonds represent voter-approved debt for capital projects for the Municipality and the Anchorage School District, including funds for roads, public safety, police protection and educational capital improvements for career, technical and vocational facility education upgrades.
“The success of this bonds issue 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 two years and in the wake of the ongoing recession,” said Mayor Sullivan. “Our goal is to continue to manage the cost of government in an efficient and effective manner. This bond sale is another example─ any time you can save taxpayers almost $2 million, that’s a good thing.”