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Finance committee hears Moody's rating; promissory note sale yields 3.84% and $911,000 in savings
Summary
Staff reported Moody's credit rating and results of a July 15 promissory note sale: a 3.84% true interest cost, TD Financial Products LLC as low bidder, and estimated net principal-and-interest savings of roughly $911,000; the closing is set for the 30th.
The Stoughton Finance Committee reviewed a Moody's investor services credit report and the results of a July 15 promissory note sale during its meeting.
A city finance staff member said the city received a 3.84% true interest cost on the notes, “which was well below what our parameters resolution had forecasted,” and named TD Financial Products LLC of New York as the low bidder. Staff estimated net principal-and-interest savings over the life of the notes at about $911,000 and said the closing is scheduled for the 30th.
The committee asked clarifying questions about past sales and market conditions; staff said the lower rate reflected market conditions and competitive bidding. No formal action on the debt was taken at the committee level; staff presented the report for committee awareness and follow-up at council as needed.
