City of Salem General Obligation Bonds Net 2.422%

Bond issue follows affirmation of City’s historic AA bond rating
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Kathleen McMahon, City Treasurer, announced that the City of Salem received competitive bids from bond underwriters on Tuesday, September 10, 2019, for a $20,945,000 30-year bond issue. Mesirow Financial, Inc. was the winning bidder on the Bonds with an average interest rate of 2.422%. The City received a total of seven bids on the Bonds. Bond proceeds will be used to finance various municipal purposes.

Prior to the sale, S&P Global Ratings, a municipal bond credit rating agency, affirmed the City’s long-term rating of ‘AA’. The rating agency cited the City’s very strong economy, strong management with good financial policies and practices, strong budgetary performance, strong budgetary flexibility, very strong liquidity, and strong institutional framework as positive credit factors.

The bids for the Bonds were accepted at the offices of the City’s Financial Advisor, Hilltop Securities Inc. at 54 Canal Street in Boston, Massachusetts.