NYC Bonds

News

New York City Transitional Finance Authority Announces Successful Sale of $1.2 Billion Future in Tax Secured Subordinate Bonds

April 1, 2021

Debt Service Savings Totaling Over $255 Million in Fiscal Years 2021 and 2022

The New York City Transitional Finance Authority (“TFA”) announced the successful sale of approximately $1.2 billion in future tax secured subordinate bonds, comprised of just over $1.0 billion of tax-exempt fixed rate bonds and about $228 million of taxable fixed rate bonds.

The refunding achieves over $255 million in total debt service savings, with approximately $23 million and $232 million of debt service savings in Fiscal Years 2021 and 2022, respectively. Refunding savings on a present value basis are nearly $247 million or 17.1% of the refunded par amount.

During the retail order period for the tax-exempt bonds, TFA received $593 million of orders from retail investors, of which $564 million was usable. The institutional order period garnered approximately $2.1 billion of priority orders, representing 4.7x the bonds offered for sale to institutional investors.

Given the strong demand, yields were reduced by 2-3 basis points for maturities in 2023 through 2027, and 1-7 basis points for maturities 2030 through 2037. Final yields ranged from 0.10% in 2021 to 2.02% for the 4% bond maturing in 2038.

The tax-exempt bonds were underwritten through TFA’s underwriting syndicate led by book-running lead manager Ramirez & Co., with BofA Securities, and Citigroup serving as co-senior managers.

The TFA also sold $228 million of taxable fixed rate bonds in two competitive bids. The first bid of approximately $159 million of bonds maturing 2022 through 2026 attracted 11 bidders, with J.P. Morgan Securities winning at a true interest cost of 0.508%. The second bid for about $69 million of bonds maturing in 2032 through 2036 attracted 13 bidders, with BNY Mellon Capital Markets winning at a true interest cost of 2.546%.

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