Buffalo, New York, issued $67.6 million in bonds to finance a personal injury settlement and fund capital improvements.
The city sold the bonds in two series. The Series 2024A bonds, consisting of $40.6 million, mature between 2025 and 2029, yielding between 2.53% and 3.19%. The Series 2024B bonds, consisting of $25 million, mature between 2025 and 2035, with yields to be determined. The securities received an underlying rating of A1 from Moody’s Investors Service and A+ from S&P Global Ratings.
“The A1 issuer rating reflects a strong reserve and liquidity position across all governmental and business type activity funds of the city and the Board of Education,” Moody’s analysts wrote.
Buffalo will use the proceeds from the Series A bonds to finance the bulk of its $43 million settlement with a woman who was struck by a police car in April 2020. Chelsea Ellis was left paralyzed by the accident four years ago. The settlement, one of the biggest ever paid out by the city, will cover lost wages and the cost of care for Ellis, who is now quadriplegic.
The city will use the Series B bonds to finance improvements to its infrastructure, firehouses, and police departments.
The bonds are general obligations of the city, backed by its full faith and credit and payable by property taxes.
Piper Sandler & Co served as underwriter on the issuance. Capital Markets Advisors LLC acted as municipal advisor.