MAY 7, 2002

City of Danbury Sells $18m in Obligations

DANBURY, CONN.
The City of Danbury on May 1 got some welcome news when it viewed the bids offered on $12.7 million in general obligation bonds and $5.7 million in bond anticipation notes.

Advest, Inc. came in with a low bid of 4.34 percent on the bonds. A portion of that amount will be used to permanently refinance a portion of maturing notes issued by the city last year;the remainder will provide new money for various school and general purpose projects. The notes were awarded to Eastern Bank on a low bid of 1.50 percent.

Matthew Spoerndle, officer, Municipal Banking & Finance at People's, said, "These are the lowest bids we've received at any sale in recent memory." The Bridgeport?based bank acted as adviser on the sale. According to Spoerndle, the favorable rate is not only a reflection of the economy in general, but also of the creditworthiness of the city.

People's has been an innovator in municipal finance. In 1999, People's became the first Connecticut bank to use the Internet to auction municipal bonds and notes, and is one of a select few using that technology today. Spoerndle explains that using the Web-based technology can mean more bidders and lower rates, saving money for the governmental agency.

Robinson & Cole, LLP, served as bond counsel at the sale. Dominic A. Setaro, Jr. represented the City of Danbury at what will, in all likelihood, be his last sale as finance director. Earlier this year, Setaro announced his retirement after serving the city in various capacities for more than 30 years.

People's (peoples.com) is a diversified financial services company providing commercial, consumer, insurance and investment services. Founded in 1842, it is the largest state-chartered bank in Connecticut with managed assets of $13 billion, 150 branches and 220 ATMs. People's is a leader in consumer and commercial banking, residential lending, insurance sales, supermarket banking and is the nation?s 15th-largest issuer of MasterCard and Visa credit cards. People's subsidiaries offer brokerage services, asset management, equipment financing and leasing, and insurance services.