By Hank Russell
Suffolk County Comptroller John M. Kennedy, Jr. announced the successful sale of $390 million in Tax Anticipation Notes (TANs). The tax-exempt notes were offered to provide short-term financing for the county’s operations ahead of the receipt of property tax revenue.
The transaction drew strong interest from the municipal market investors, reflecting continued confidence in the county’s credit profile and financial management. J.P. Morgan Securities LLC submitted the winning bid, providing the County with a net interest cost of 2.53%.
Suffolk County publishes our Preliminary Official Statement (POS) and Notice of Sale (NOS) across the municipal newswire and to New York underwriters. This is a public process, according to the comptroller’s office.
Entities then place their bids for the lowest interest rate. There were “15-16 different entities” that bid and JPM was awarded the sale after they offered the lowest interest rate, according to the comptroller’s office.
Kennedy pointed out that, in contrast to last year’s sale — in which more than one entity was awarded portions of the notes — JPM took the whole of the issue this year, and at an even lower interest rate. He said it is a testament of the appetite of the market for municipal debt and also shows the solid financial position that Suffolk County is in.
“Today’s TAN sale demonstrates the strength of Suffolk County’s position in the municipal marketplace,” Kennedy said. “Investor demand allowed us to secure favorable terms for the taxpayer, while continuing to responsibly manage our short-term financing needs.”
The TANs will be issued later this month and will be repaid in July 2026.