(Hauppauge, NY— April 10, 2013) – Suffolk County Comptroller Joseph Sawicki, Jr. announced today the successful sale of $115 million in Revenue Anticipation Notes (RAN) and $37 million in Bond Anticipation Notes (BAN), which will carry a favorable net interest rate of .61 percent. Borrowing at a lower interest rate saves taxpayer dollars on these sales.
Proceeds from the RAN sale will provide cash flow in anticipation of 2013 state and federal receivables and will be repaid by March 2014. Proceeds from the BAN sale will be used to finance the cost of a 2012 arbitration award ordered to be paid to the Suffolk County Corrections Officers Association. The note will be repaid by May 2014.
The .61% rate is significantly lower than the rate obtained in April 2012 when the RAN rate was 1.06% saving Suffolk County $491,000 in interest costs and is also lower than the .67% rate the County obtained in December 2012 on the sale of tax anticipation notes. According to Comptroller Sawicki the sale was oversubscribed, receiving orders of $179 million, which he called, ‘further evidence of strong market support for Suffolk County.”
“In spite of the recent rating downgrade, which was due to Suffolk’s tight cash condition, Suffolk County remains a good investment,” said Comptroller Sawicki.
“The market is voting with their wallets on the progress we are making in addressing Suffolk County’s fiscal challenges,” said County Executive Steven Bellone.
TD Securities LLC was the lead underwriter on the sale and Sterne Agee co-managed the sale.