Denison takes advantage of low rates, issues $11.8M bonds
In an effort to continue to take advantage of near historic-low interest rates this week, Denison issued $11.8 million in debt. The new debt represent the second set of bonds that the city has issued this year that have had interest rates around or below 2 percent.
"These bonds were sold through a competitive sale and what that means is essentially these bonds were put out into the public market and underwriters were invited for the right to bid," said Marti Shew, representing Hilltop Securities.
These new bonds will be used for 2021 capital projects including several water system improvements. These projects include work on Theresa Lane, FM 691 and Loy Lake Road, along with other extensions.
The city was able to get seven bids for the $11.8 million in bonds, with the winning bid offering a true interest cost of 2.006 percent. By comparison, the Bond Buyer Index listed a weekly rate of 2.28 percent.
In pursuing this latest bond, the city sought out a credit ratings and received an AA- rating from Standard and Poors Global and a AA rating from Fitch.
In February, the city issued $18 million in bonds to fund the first phase of the Designing Downtown Denison project, which will see the rebuild and redesign of the Main Street streetscape. At the time, the city received a 1.58 percent rate for the debt.