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S&P assigns BBB+ to CID bonds; advisers estimate 5–5.5% interest range
Summary
Staff financial adviser told the CID board that Standard & Poor's assigned a 'BBB+' rating to the single‑purpose bond backed by the 1% CID sales tax and that preliminary market pricing suggests average interest rates just above 5%, potentially in a 5–5.5% range.
Todd (speaker 10), who is advising on the bond sale, told the CID board that Standard & Poor's assigned a 'BBB+' rating to the single‑purpose bond issue secured by the CID's 1% sales tax revenue. Todd said the rating fell on the higher end of the range the team expected and that the rating should help marketing the bonds. He cautioned that market conditions have moved recently and that precise interest pricing depends on market direction and the final structure.
“I mean, this was just an estimate, from a couple weeks ago, but we were at an average rate of just a little above 5%,” Todd said when asked about likely interest costs, adding the rate could be higher now given market volatility. Todd told the board he will circulate updated numbers after further discussions with the underwriter. Board members said the rating and pricing will influence when and how the project moves to contract award and how the project debt will be structured for long‑term service.
The board discussed timing for aldermanic action and whether a special Board of Aldermen meeting would be required to enact bond resolutions once bids and pricing are available.
