Palm Springs Financing Authority Sells $44.9 Million of Bonds in Less than Five Hours
The Palm Springs Financing Authority today successfully sold $44.9 million of lease revenue bonds to the public.
The bonds are being issued to finance public improvements associated with the first phase of the Downtown Revitalization Plan. The City was able to secure historically low interest rates averaging 4.16 percent based on a strong interest rate market and demand for investors.
“The low interest rates the City locked were significantly lower than the 4.50 percent interest rates we expected in early April. The lower interest rates will save over $115,000 per year in lower interest payments for the next 23 years,” said Suzanne Harrell, the City’s Finance Advisor. “In total, the City will save over $2.5 million over the life of the bonds.”
Over the past month there has been a tremendous amount of interest in the City’s bond sale from investors around the country.
De La Rosa & Company took orders for the bonds this morning and the City sold 100 percent of the bonds in less than five hours.
Contact: Amy Blaisdell