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Strafford County accepts lowest bid for $11.3 million bond sale, awards to Robert W. Baird & Co.
Summary
County staff reported five bids on an $11.3 million general-obligation bond sale and recommended awarding to Robert W. Baird & Co.; county officials signed award documents and outlined repayment timing and amortization details.
Diane Legere, a finance staff member for Strafford County, reported that five bids were received on an $11,300,000 general-obligation bond sale and recommended awarding the sale to Robert W. Baird & Co., whose bid produced a net interest cost of about 3.35% after a reported premium.
Legere said the issuer received a premium of $897,000 that lowered the effective interest cost from the county’s earlier conservative estimate of about 3.95% provided by bond counsel. She told commissioners the lowest bid’s coupon was 5% and that all five bidders submitted similar structures with premiums. “The lowest bid is Robert and Baird and Company,” Legere said during the public bid opening.
The bid documents required signatures, and county officials signed a certificate of award during the meeting. Legere said the county specified that the first interest payment on the bonds would be next February and the first principal payment in August; the bonds carry a 20-year amortization with equal payments, she said. She also told commissioners the premium is received up front and will change the principal calculation.
County staff said the municipal-bond bank’s January rate was about 3.34% and that the competitive bidding and premiums received were “very comparable” across the five offers. Officials noted 10 firms had expressed interest but five submitted bids.
Votes at a glance - Action: Award general-obligation bond (amount cited in meeting: $11,300,000) to Robert W. Baird & Co.; motion and second not specified in the transcript; outcome recorded as awarded during the meeting; vote tally not specified in the transcript. - Action: Motion to adjourn to a nonpublic session on personnel/contract negotiation (moved by Commissioner Petrie, seconded by “Commission 11” in the transcript); roll-call vote was taken and the transcript records the result as unanimous.
Why this matters: The bond sale provides county financing for projects identified in the bond authorization; the premium received reduced the county’s effective borrowing cost, altering the county’s debt-service calculations and cash flows.
Background and next steps: County staff indicated the premium will reduce the net principal the county carries and that staff will provide amortization details to the commissioners. County staff asked three commissioners to sign closing and award documents before the end of the day so the sale could proceed.
