While basking in the glow of a just-confirmed third triple-A rating, Summit, N.J., has sold $10.2 million of general obligation bonds at an interest cost of 5.60%.
According to Ronald J. Angelo, the city's chief financial officer, there were four bidders competing for the deal. A syndicate led by Ryan Beck & Co. won the offering. Chemical Securities Inc. provided a cover bid of 5.62%.
The long-term bonds were reoffered at 6%. During the week the issue was priced, The Bond Buyer's 11-bond index was calculated at 6.45% on June 4 and 6.46% on May 28.
Bond proceeds will be used to finance the construction of a new city hall.
Mr. Angelo also commented that 5.60% was a "very good" interest cost.
The sale was conducted after Summit became the only New Jersey issuer to receive triple-A ratings from all three rating agencies. The city gained this status when Standard and Poor's Corp. upgraded the town to the gilt-edged status from AA-plus last month.
Out of New Jersey's 567 municipalities. Summit is the only one with AAA ratings from both Fitch Investors Service Inc. and Standard & Poor's.
Six issuers, including Summit, hold an Aaa from Moody's Investors Service. The other municipalities are Princeton Township, Princeton Borough, Millburn, Berkley Heights, and Floren Park Borough.
