City Issues Bonds, Gets Ratings Upgrade
June 16, 2014
Minority-owned firms manage the City's Capital Bonds deal - The City of Tallahassee recently received an upgrade in its Capital Bonds ratings from Moody's Investor Services for its 2014 Capital Bonds. Strong bond ratings lower the cost the City pays to borrow funds and demonstrates a confidence in the City's financing.
Moody's Investor Services upgraded its ratings on the City's Capital Bonds from Aa3 to Aa2 in conjunction with the City's issuance of $40 million of debt. Fitch Ratings maintained the City's bond rating of AA.
"We are very pleased with the upgraded rating," said Jim Cooke, City Treasurer-Clerk. "This provides confirmation by a third party of the strength of the city's financial position."
The 2014 Capital Bonds were issued to fund the construction of improvements to FAMU Way, the City's portion of the new Public Safety Complex, the new fire station on Weems Road as well as various sidewalk improvements.
Two minority-owned firms managed the sale of the bonds, Loop Capital and Ramirez and Company, marking the first time the City has exclusively used minority-owned firms to conduct one of its bond transactions. Loop Capital served as the senior manager for the transaction, while Ramirez and Company participated as a co-manager. The bonds were sold on May 20 at an interest rate of only 3.54 percent, with the final maturity in 2034.
"The City of Tallahassee is committed to supporting minority-owned businesses, and we are pleased with this vote of confidence from the rating agencies," Mayor John Marks said.
For more information, please contact the City Treasurer-Clerk's Office at 891-8130.
Jim Cooke, City Treasurer-Clerk, 891-8130; or Michelle Bono, Assistant to the City Manager, 891-8200