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Torrington sells $16.325M bond anticipation note; Raymond James wins with 2.2642% net interest cost
Summary
City Treasurer Farley reported the city sold a $16,325,000 bond anticipation note on Feb. 24 to Raymond James & Associates with a net interest cost of 2.2642% and a premium of $282,585.75. Final closing is scheduled for March 12.
Torrington’s city treasurer told the council that the city completed a bond anticipation note sale on Feb. 24, receiving five bids and selecting Raymond James & Associates as the winning bidder.
City Treasurer Farley said the principal amount offered was $16,325,000 and that the city’s net interest cost was 2.2642. "They ended up with a net interest cost to the city of 2.2642%, and that was, because we were paid a premium by them of $282,585.75," Farley said. The final closing is scheduled for March 12, when the city will use the proceeds to retire the prior anticipation note.
Why it matters: The sale secures near-term funding for city obligations and replaces an earlier anticipation note; the interest rate and the premium received affect the city’s borrowing cost and budget planning.
Next steps: Final closing on the transaction will be held on March 12 and proceeds will be used to pay off the previous anticipation note.
