NYC Bonds

To our investor community,

In February, New York City executed a refunding transaction that generated $153 million in budget savings. The Comptroller highlighted this transaction in his State of the City Address, where he also challenged City agencies to identify $2 billion of capital projects that could be accelerated in order to create jobs. The details of the refunding transaction and upcoming transactions are discussed below.

Public Financings
New York City sold $1.03 billion Fiscal 2012 Series E and F General Obligation (“GO”) refunding bonds on February 24, 2012. (Read the Press Release) Due to strong investor demand, the transaction was upsized from the original $800 million par amount printed in the Preliminary Official Statement. The refunding bonds generated $153 million of budget saving over the life of the bonds. The $153 million of savings generated by the Fiscal Series E and F GO refunding bonds is in addition to the more than $560 million of budget savings generated by refundings over the past two years as reported by the Comptroller during his State of the City Address. (Read the Press Release)

Looking ahead, the New York City Municipal Water Finance Authority (“NYW”) is expected to sell second resolution tax-exempt bonds the week of March 5th. (Read the Press Release) The NYW bonds will consist of both new money and refunding bonds. In addition, New York City is scheduled to issue GO new money bonds during the week of March 19th. A large portion of the GO bond issue is expected to be sold as variable rate demand bonds. You can sign up to receive bond sale notification by emails on the Comptroller’s Public Finance Investor Relations Website.

Cash Reports
The Office of the NYC Comptroller Bureau of Financial Analysis released the Quarterly Cash Report analyzing the City’s cash position from October through December 2011 and the Monthly Cash Letter containing cash balance projections through June 2012. Since the beginning of October 2011, NYC central treasury cash balances have conformed very closely to last year’s levels. The NYC cash balance on February 24, 2012 was $4.445 billion. The Quarterly Cash Report and Monthly Cash Letter can be downloaded by clicking on the links above.

You can sign up to receive email notifications when key reports such as the Quarterly Cash Report and Monthly Cash Letter are ready for electronic download by subscribing on the Comptroller’s Public Finance Investor Relations Website.

Carol Kostik
Deputy Comptroller for Public Finance