$10.5 MILLION ISSUED IN SOLID WASTE AUTHORITY BONDS
(6/30/2008) NEW HAVEN- Earlier today, The New Haven Solid Waste and Recycling Authority (NHSWRA or "the Authority") successfully completed its inaugural $10.5 million bond issue. The Authority was created in March of this year to own and operate the Transfer Station and help save the City of New Haven millions of dollars in operating costs related to the retrieval and processing of solid waste and recyclables. The City and the Authority assembled a financing team that included Malcolm Pirnie, a New York-based engineering consulting firm, Robinson & Cole, LLP as Bond Counsel and Public Financial Management, Inc. ("PFM") as Financial Advisor. Wachovia Bank, N.A. was selected as Senior Underwriter through a negotiated RFP process.
The financing team worked closely with the city’s Budget Director, Lawrence Rusconi as well as Controller Mark Petrosimone and Director of Public Works, John Prokop. Together the team worked diligently to assist the Authority in securing an "A" rating from Standard and Poor's. This solid investment grade credit rating coupled with marketing efforts from Wachovia resulted in the bonds being sold successfully on June 25, 2008 on an uninsured basis. The bonds structured with a 20-year amortization and were priced successfully at true interest cost of 5.35% during a week that saw extreme volatility in the municipal bond market. The bond proceeds were used to facilitate the purchase of the Transfer Station from the City, the establishment of several reserve funds, a capitalized interest fund, and to pay for additional project costs.
Mayor John Destefano, Jr. cited that the positive marketplace reaction to this endeavor illustrates the soundness of this new strategic direction for meeting the City’s solid waste disposal needs.
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