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Needham sells $2.76 million bond anticipation note at 4% to refinance maturing debt
Summary
Town Treasurer sold a $2,760,000 bond anticipation note to refinance existing debt maturing July 30; Fidelity Capital Markets won with a 4% coupon and premium, yielding a net interest cost of about 3.06 percent. Town will decide in September whether to reissue another BAN or pursue permanent financing.
The Town of Needham on July 22 reported the successful sale of a $2,760,000 bond anticipation note to refinance existing, maturing short-term borrowing.
Town Treasurer David Davison told the Select Board the sale drew four bids. Fidelity Capital Markets submitted the winning bid with a coupon rate of 4.0 percent and a premium of $6,486, producing a net interest cost to the town of approximately 3.06 percent. The sale refinances debt that matures July 30 and extends the town's short-term financing until Oct. 30, 2025; the town will reassess in September whether to roll the borrowing into another BAN or pursue permanent long-term financing depending on market conditions and project needs.
The borrowing covers previously authorized projects; no new projects were added to this note, Deputy Town Manager/Finance Director provided assurance the funds continue to relate to the water project and Emery Street (Emery Bridal) project lines that matured this summer. The board voted to approve motions necessary to support the sale and signed required documents.
Ending: Officials said the sale produced a competitive result and that the town appreciates the treasurer's office work on the transaction; the Board signed the final documents in the meeting.
