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NEW YORK CITY TRANSITIONAL FINANCE AUTHORITY ANNOUNCES SUCCESSFUL SALE OF $1.05 BILLION OF NEW MONEY BONDS

July 13, 2016

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 $231 million of retail orders for the tax-exempt bonds during the two-day retail order period preceding today’s sale, of which approximately $175 million was usable.  At the final pricing, strong investor demand made it possible to reduce yields by up to 5 basis points in 11 maturities Final stated yields on the tax-exempt bonds varied by coupon and maturity, ranging from 0.60% in 2018 to 2.24% in 2040 for a 5.00% premium coupon bond and 2.51% in 2042 for a 4.0% coupon bond. The tax-exempt fixed-rate bonds were sold via negotiated sale by the TFA’s underwriting syndicate led by book-running senior manager Siebert Brandford Shank & Co., L.L.C. with BofA Merrill Lynch, Citigroup, Goldman Sachs & Co, Jefferies LLC, J.P. Morgan, Loop Capital Markets, Ramirez & Co., RBC Capital Markets, and Wells Fargo Securities serving as co-senior managers on the transaction.

The TFA also sold $250 million of taxable fixed rate bonds, consisting of two subseries, via competitive bid.  The winning bidder for the first subseries of approximately $187 million of bonds maturing in 2020 through 2026 was RBC Capital Markets at a true interest cost of 1.978%.  The winning bidder for the second subseries of approximately $63 million of bonds maturing in 2027 and 2028 was BofA Merrill Lynch at a true interest cost of 2.581%

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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2022