WASHINGTON -- The District of Columbia has received two proposals from banks to back a $250 million note sale planned for Dec. 28, district officials announced Friday.
Mayor Sharon Pratt Kelly said the winner will be announced this Friday, but the names of the bidders will not be released before then at the request of the banks. While the sale is planned under Kelly's administration, officials said the closing will occur early next month under Marion Barry, who will succeed her on Jan. 2.
An international bank with a credit rating of A1 submitted one proposal, and a syndicate consisting of five domestic and international banks with a rating of A1 or better put in the second, Kelly said.
The district received six letter-of-credit proposals for its $200 million short-term borrowing last May; the winner was Swiss Bank Corp.
The two bids received last week are "a spectacular response," Kelly said. But district council chairman David Clarke said the assurance of credit enhancement is only "a moment of relief. We still have a big struggle ahead" to solve the district's financial crisis.
Ellen O'Connor, the district's deputy mayor of finance, said projected borrowing costs are $10 million, and no extraordinary terms and conditions are involved in the negotiations.