ORANGE COUNTY BOND SALE CALLED SUCCESSFUL, BUT COSTLY.Byline: Leslie Wayne The New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times In a deal that will lift it from bankruptcy, Orange County sold nearly $900 million in bonds Wednesday to a forgiving market - but at a price. The bonds were priced at a premium of as much as one-fifth of a percentage point over prevailing interest rates and were offered with insurance to enable them to attract buyers. While the bonds' sellers declared the sale a rousing rous·ing adj. 1. Inducing enthusiasm or excitement; stirring: a rousing sermon. 2. Lively; vigorous: a rousing march tune. 3. success, others said that the premium would be costly to the county. The bonds are being issued to pay holders of Orange County notes and vendors who have been forced to wait to get repaid after the county's bankruptcy filing nearly 18 months ago. The filing, the biggest municipal bankruptcy in history, came after the county suffered a $1.6 billion loss after making risky investments with municipal funds. ``Overall, it's been a huge success,'' Michael McCarthy
Michael McCarthy (born 1976) is an Irish politician and member of the 23rd Seanad Éireann for the Labour Party. He was also a member of the 22ns Seanad. , a partner at Goldman, Sachs & Co., said of Wednesday's bond sale. ``The county is very happy with the results and is thrilled thrill v. thrilled, thrill·ing, thrills v.tr. 1. To cause to feel a sudden intense sensation; excite greatly. 2. To give great pleasure to; delight. See Synonyms at enrapture. to be headed out of bankruptcy.'' The deal was managed by Goldman and by A.G. Edwards & Sons. Still, the market extracted its price. ``I think that the premium is large for an insured bond Insured bond A municipal bond backed both by the credit of the municipal issuer and by commercial insurance policies. insured bond A municipal debt obligation for which interest and principal are guaranteed by a private insurance company. ,'' said William Fitzgerald For other persons named William Fitzgerald, see William Fitzgerald (disambiguation). William Fitzgerald was an American politician who represented Tennessee's At-large congressional district in the United States House of Representatives. , a portfolio manager at John Nuveen & Co., a mutual-fund company. ``Clearly the market is penalizing the county for its past transgressions and for the risk that the county will act without integrity in the future.'' |
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