News
New York City Transitional Finance Authority Announces Successful Sale of $1.1 Billion of Future Tax Secured Subordinate Bonds
The New York City Transitional Finance Authority (“TFA”) announced the successful sale of approximately $1.1 billion of future tax secured subordinate bonds, comprised of roughly $932 million of tax-exempt fixed rate bonds and just over $119 million of taxable fixed rate bonds. Proceeds from the sale will be used to refund certain outstanding bonds for savings.
During the retail order period for the tax-exempt bonds, TFA received just under $409 million of orders from retail investors, of which about $403 million was usable. The institutional order period garnered over $1.0 billion of priority orders, representing around 2.0x the bonds offered for sale to institutional investors.
Given the strong demand, yields were reduced by 1 basis point for maturities in 2023, 2025, 2026, and 2033. Final yields ranged from 0.08% in 2022 to 1.73% for the 3% bond maturing in 2038.
The tax-exempt bonds were underwritten through TFA’s underwriting syndicate led by book-running lead manager Siebert Williams Shank & Co, with Jefferies, and Loop Capital Markets serving as co-senior managers.
TFA also sold approximately $119 million of taxable fixed rate bonds via competitive bid. The bid attracted 12 bidders, with Jefferies winning at a true interest cost of 0.629%.