MUNICIPALITY OF ANCHORAGE TAX ANTICIPATION NOTE ISSUE
Notes Sold Competitively on February 22, 2012
Contact: Lucinda Mahoney
ANCHORAGE - The Municipality has sold $120 million of Tax Anticipation Notes. The short term Notes have been rated SP-1+ by Standard & Poor’s rating agency, its highest rating for short term debt obligations. The competitively bid transaction was completed this morning and resulted in an extremely low cost of funds to the Municipality of 0.28%. These Note proceeds are used by the Municipality until property tax receipts are received in June and August.
“The short term Notes due August 31, 2012, were bid for very aggressively in today’s marketplace by investors that are seeking out stand-alone credit names that are highly rated,” said Chief Fiscal Officer, Lucinda Mahoney. The Municipality enjoys general obligation ratings of ‘AA’ by Standard & Poor’s and ‘AA+’ by Fitch Ratings. Ms. Mahoney also noted, “We are extremely pleased with the continued recognition by the rating agencies of the Municipality’s properly managed fiscal affairs as well as the stable underlying economy in Anchorage.”
“The continued success of receiving high quality ratings on the Municipality’s debt demonstrates the investor confidence in the Municipality of Anchorage and recognition of the outstanding management of the Municipality’s debt and investments currently and over the past several years,” Mayor Dan Sullivan said.