Hingham, Massachusetts, issued $97.5 million in bond anticipation notes to redeem outstanding bond anticipation notes and finance a variety of capital improvement projects ahead of a long-term bond issuance.
The notes mature on February 14, 2025, and yield 2.95%. They pay interest at 4%. The securities received a rating of MIG 1 from Moody’s Investors Service.
The rating “reflects the town’s history of market access with multiple sales in the last several years,” Moody’s analysts wrote. The rating also reflects the town’s Aaa issuer rating, they said.
Hingham has tapped the bond market for a variety of financing in recent years. The 2024 notes will support road construction, school improvements, and public safety projects, among other initiatives. Hingham plans to issue additional debt to fund upgrades at the town’s harbor, senior center, and country club.
Amid those projects, the town has run into budgetary trouble. Last year, Hingham voters approved a one-time “tax override” that hiked property taxes by 2.5% to fill an $8 million budget shortfall.
Hingham is a wealthy town of 24,000 people on Boston’s South Shore. The notes are general obligations of the town, backed by its full faith and credit.
J.P. Morgan Securities LLC served as lead underwriter on the issuance. Capital Markets Advisors, LLC acted as municipal advisor.