Harrisburg, Pa., recovering from a financial crisis that pushed it to the brink of bankruptcy, made its latest general obligation bond payment at the end of August, two weeks early.
Pennsylvania's capital has paid a combined $7.7 million in GO payments this year, including an earlier payment in March, its first such payment since September 2011.
"We hope that this restores confidence in the Harrisburg credit more quickly, results in lower interest rates and market access more quickly for the city," said Steven Goldfield, an attorney at Public Resources Advisory Group in Media, Pa., and the lead financial advisor for the city's recovery team.
Harrisburg late year implemented a plan to restructure more than $600 million of debt, much of it related to bond financing overruns to an incinerator retrofit project. Under the plan, the city will repay GO creditors, including credit enhancer Ambac Assurance Corp., in full, but over an extended period.
Bond sales for both closed in late December.
In March, Harrisburg wired $4.7 million of a $5.14 million payment with GO bond insurer Ambac covering the balance.
