CROMWELL - Town Manager Anthony Salvatore and Finance Director Marianne Sylvester announced that People’s United Bank has submitted the winning bid for a $3,150,000 private placement of general obligation bonds for the Town of Cromwell. The sale proceeds will be used to refund a series of bonds issued in 2004, allowing the town to refinance that debt at historically low rates and yielding over $150,000 in present-value savings to Cromwell taxpayers.

       â€�"This is the definition of sound financial planning,” said Salvatore. â€�"We are consistently evaluating ways of better managing our finances while meeting the needs of our residents. Not only does this refinancing stabilize and reduce our long-term debt service, but it provides short-term savings to our taxpayers.”

       â€�"To be able to refinance our outstanding debt at today’s low rates was an opportunity that we could not pass up,” said Sylvester. â€�"Just as important was the savings generated by this issuance is the fact that it truly is an efficient refunding, meaning that the cost of generating this savings is exceptionally low. The efficiency rating on this deal is 97.82 percent, so the combination of low interest rates and high efficiency rating makes this issue a home run for Cromwell.”

       Sylvester continued, â€�"[This] action by the Federal Reserve is a reminder that rates won’t stay this low forever and I am pleased that we were able to stay ahead of the market on this one. I also want to thank People’s United Bank for their winning bid and for being a good business partner with the Town of Cromwell.”

       This will be a serial issue maturing in 2021, with annual coupon (interest) payments of 1.5 percent. Investment bank William Blair & Co., a leader in the Connecticut public finance sector, acted as placement agent for the issue. Day Pitney, LLP, served as bond counsel for the town.