NYC Bonds

News

Monthly Public Finance Wrap-Up: March 2018

March 30, 2018

TFA BARB Sale Draws Record Individual Investor Response

The New York City Transitional Finance Authority (TFA) sold approximately $1.08 billion of new money and refunding Building Aid Revenue Bonds (BARBs) via negotiated and competitive sales on March 14. The two-day order period for individual investors recorded one of the highest order totals across any of the City’s credits – over $845 million from individuals and professionally-managed individual accounts.

The negotiated sale utilized three-year par call dates on some of the bonds to address a specific bond structuring challenge expected to arise in 2021 as a result of the recent federal tax law. This differs from the City’s (and the municipal market’s) standard ten-year par call feature. Though the City does not expect to offer bonds with these shorter call dates in upcoming sales, they were part of a diverse bond issue that attracted investors with varying market perspectives and needs. This resulted in favorable pricing for the City. Jefferies served as book-running senior manager for the bonds. The competitive sale of about $75 million of taxable bonds attracted eight bidders, with Bank of America Merrill Lynch winning the bid. Read the full press release.

$495 Million New York Water Bond Sale

The New York City Municipal Water Finance Authority sold approximately $495 million of new money and refunding revenue bonds via competitive sale on March 8. Jefferies won the bid for the $275 million of new money bonds maturing in 2048, over seven other bidders. Morgan Stanley won the bid for the $220 million of refunding bonds, which ranged in maturity from 2021 to 2040, out of a field of seven bidders.

NYC Bond Fact

The Port Authority of New York and New Jersey was established in 1921 as the first U.S. inter-state authority. The creation of special districts like the Port Authority, with powers to issue bonds and raise and appropriate funds, was modeled on the Port of London Act of 1908 that centralized management of docks and the tidal River Thames.

Looking Ahead

The New York City Municipal Water Finance Authority plans to sell approximately $425 million of refunding bonds via negotiated sale next week. Individual investors will have priority in placing orders for the bonds on Tuesday, April 3. New York City also plans to offer General Obligation bonds in April. Stay tuned for additional details.

As always, we appreciate your interest in New York City bonds.

Carol S. Kostik
Deputy Comptroller for Public Finance

Postcard from New York
Pelham Bay Park in the Bronx is the largest park in New York City, at three times the size of Central Park. The area was created by purchasing land from a collection of estates and protecting the site from development in 1888. Read more about the park’s history. Pelham Bay Park is home to the historic Bartow-Pell Mansion Museum, which is open for tours Wednesdays, Saturdays, and Sundays.

Notice and Disclaimer

Under no circumstances shall the information on this website constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers to purchase securities may be made only through a registered broker-dealer and through an official statement.

The information contained on this website has been included for general informational purposes only and no person should make any investment decision in reliance upon the information contained herein.

Bonds may not be sold, nor may an offer to buy be accepted, prior to the time an Official Statement is delivered in final form. A definitive Official Statement with respect to any bonds will be made available concurrently with their sale. A Preliminary Official Statement for any bonds may be obtained from the firms listed on the cover of the Preliminary Official Statement and on this website.

Any Preliminary Official Statement relating to bonds included on the Upcoming Transactions page is provided only as a matter of convenience.

For investment advice on bonds, please contact your investment advisor.

No statement found on this website is incorporated by reference in any Official Statement for the bonds and no statement on this website is part of any Official Statement.

By choosing to continue and view the information on this website you are acknowledging that you have read and understood and accept the terms of this Notice and Disclaimer.

$242 billion
Aug
2022