Wendell officials weigh bank loan vs. public bond sale for voter‑approved G.O. borrowing

Davenport & Company presented financing options for the Town of Wendell’s voter‑approved general obligation (G.O.) borrowing, telling the Board of Commissioners that a direct bank loan from Webster Bank would provide a near‑term, lower‑risk way to secure approximately $22.2 million in project funds now while the public bond market remains volatile.

The presentation, delivered by Davenport financial advisor Mr. Collins, laid out two routes: a bank financing (selling the loan to a single lender) and a public bond sale (selling through an underwriter to multiple investors). Davenport showed a Webster Bank proposal with a fixed nominal interest rate of about 4.53% (an all‑in rate of about 4.60% after issuance costs), a par loan amount of $22,400,000 and estimated net proceeds of about $22,200,000 after approximately $215,000 in issuance costs. The public sale scenario was estimated to carry a lower coupon yield (about 4.18% in Davenport’s model) but higher issuance costs and market timing risk; Davenport estimated the two options would break even if market rates changed by roughly 27 basis points between now and the public sale date.

Why it matters: the first borrowing is the initial issuance of a voter‑approved G.O. bond package the town plans to spend on capital…