The City of Evanston conducted its annual general obligation bond sale Wednesday receiving what Assistant City Manager Marty Lyons called a “fantastic” total interest cost of 2.97 percent on the new bond issue.
Lyons says seven financial firms offered to buy the bonds, with JP Morgan offering the winning bid that included a cash premium to the city of $745,000 to achieve a higher coupon interest rate on the bonds. The full amount of new 20 year bonds issued was $13.095 million.
The interest rate on the new bonds, the assistant city manager says, is almost equal to the rate achieved in the city’s last bond sale a year ago.
The city Wednesday also refinanced previously issued bonds that were due to be paid off in 2024. Lyons says the total interest rate on the refinanced bonds is now 1.58 percent and that the city will save more than $1 million in interest payments over the remaining nine year term of those bonds through the refinancing.
The two sales will have the net result of reducing the city’s total debt by about $1.75 million compared to a year ago.