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Chelmsford’s AAA rating reaffirmed; town sells bonds and notes with competitive bids
Summary
Standard & Poor’s reaffirmed Chelmsford’s AAA rating with a stable outlook; the town sold $12.5 million in general-obligation bonds (low bidder TD Financial Products, net interest cost 3.18345%) and $19.2 million in bond anticipation notes (low bidder Huntington Securities, net interest cost 2.729%). The Select Board authorized the sales.
Town Manager John reported that Standard & Poor’s reaffirmed the town’s AAA bond rating with a stable outlook, citing a mature economy and consistent financial performance. That rating, officials said, drew a strong market response at recent sales.
John told the board the town received 17 bids on $12.5 million of general-obligation bonds and six bids on $19.2 million of bond anticipation notes, the highest number of registered bidders any town staff or the bond advisor could recall. The low bidder on the bonds was TD Financial Products LLC with a total interest cost of 3.18345%; Huntington Securities submitted the low bid on the notes with a net interest cost of 2.729%.
"We received 17 bids on 12.5 million of general obligation bonds... the highest number of registered bidders that either myself or our bond advisor could ever recall," John said, and noted the strong competition likely improved pricing.
The board voted to approve the bond sales as presented by roll call, and staff said proceeds will fund the FY27 capital-improvement plan, including first-phase work on fire stations, school elevator replacements and water/sewer and stormwater projects.
