By Michael Souza
PBN Staff Writer
PHILADELPHIA – Janney Montgomery Scott LLC, a full-service wealth management, financial services and investment banking firm headquartered in Philadelphia, has announced the successful closing of the state of Rhode Island's $122.95 million general obligation bond issue, which sold on April 24.
"This particular bond issue reaffirmed investor confidence in the state's credit, and the issue was in strong demand by both retail and institutional investors," said Tom Henson, Janney’s head of public finance.
Janney served as book-running senior manager on the transaction. An improving outlook for the state and concrete accomplishments such as recent pension reform legislation, enacted with strong bipartisan support, helped Rhode Island realize more than $7 million in net present value savings. The state also achieved lower interest rates relative to market benchmarks than recent issues, reflecting improved marketability for its bonds. With this bond sale, the state’s first of 2012, Janney helped Rhode Island replace debt with interest rates of four to five percent with new debt whose interest rates average two and a half percent.