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Guilford Nets Low Rates on $30 Million in Bonds

On Aug. 3, the Town of Guilford sold $15,630,000 in long-term bonds and $14 million in short-term bond anticipation notes through a competitive bid process. Approximately $22.6 million of the proceeds from the sale will be used to finance the town’s new high school, which opened to students in September 2015. The balance of the proceeds will be used to fund various town and education improvement projects. The town received seven bids on the bonds and five bids on the notes. The bonds were purchased by Fidelity Capital Markets 2.22 percent, which was lower than the rate received on its 2015 bond issue. The notes were purchased by J.P. Morgan Securities, LLC.

The town attributed the increased demand and lower interest rate on the bond issue to the AAA bond rating recently reaffirmed by Standard & Poor’s Rating Services. Standard & Poor’s assigned its highest long-term bond and short-term note ratings to the town based on its assessment of “the town’s strong wealth and income levels and the diverse and dynamic local and regional economies.” Additionally, Standard & Poor’s credited the town’s strong management and budgetary performance, which is evident by its past seven years of continued surpluses and increasing unassigned reserves, as supporting its highest rating. The rating report mentioned development projects including Guilford Commons and The Residences at 66 High Street as providing additional diversity and growth to the tax base. The bond issue was also rated Aa2 by Moody’s Investors Service.

The town was assisted in the transaction by Independent Bond & Investment Consultants of Madison as municipal advisor and Day Pitney LLP of Hartford as bond counsel.