News
NEW YORK CITY TRANSITIONAL FINANCE AUTHORITY ANNOUNCES SUCCESSFUL SALE OF $1.05 BILLION OF NEW MONEY BONDS
The New York City Transitional Finance Authority (“TFA”) announced the successful sale of $1.05 billion of future tax secured fixed-rate subordinate bonds, including $800 million of tax-exempt new money bonds and $250 million of taxable new money bonds.
The TFA received approximately $219 million of retail orders for the tax-exempt bonds during the two-day retail order period preceding today’s sale, of which approximately $195 million was usable.
At the final pricing, strong institutional investor demand made it possible to reduce yields by 1-2 basis points in five maturities. Final stated yields on the tax-exempt bonds varied by coupon and maturity, ranging from 0.77% in 2018 to 2.53% in 2040 for the 5% coupon, 2.80% in 2041 for the 4% coupon and 3.01% for the 3% coupon.
The tax-exempt fixed-rate bonds were sold via negotiated sale by the TFA’s underwriting syndicate led by book-running senior manager Ramirez & Co., Inc., with BofA Merrill Lynch, Citigroup, Goldman, Sachs & Co., Jefferies, J.P. Morgan, Loop Capital Markets LLC, RBC Capital Markets, Siebert Cisneros Shank & Co., L.L.C. and Wells Fargo Securities serving as co-senior managers.
The TFA also sold $250 million of taxable fixed rate bonds, consisting of two subseries, via competitive bid. The first subseries of approximately $188 million of bonds maturing in 2020 through 2026 attracted ten bidders, with J.P. Morgan winning at a true interest cost of 2.220%.
The second subseries of approximately $62 million of bonds maturing in 2027 through 2028 attracted 11 bidders, with Jefferies winning at a true interest cost of 2.766%. Standard & Poor’s rates the TFA subordinate lien bonds at AAA, Fitch Ratings rates the TFA subordinate lien bonds at AAA and Moody’s Investors Service rates the TFA subordinate lien bonds at Aa1.
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