NYC Bonds

News

New York City Transitional Finance Authority Announces Successful Sale of $1.25 Billion Future Tax Secured Subordinate Bonds

February 9, 2024

The New York City Transitional Finance Authority (“TFA”) announced the successful sale of $1.25 billion of future tax secured subordinate bonds, comprised of $1 billion of tax-exempt fixed rate bonds and $250 million of taxable fixed rate bonds. Proceeds from the sale will be used to fund capital projects.

TFA received $319 million of orders during the retail order period and approximately $4.5 billion of priority orders during the institutional order period, which in total represents 4.8x the bonds offered for sale.

Given investor demand for the tax-exempt bonds, yields were reduced relative to the start of the institutional order period by 2 basis points in 2041, 2044 and 2045; by 3 basis points in 2043 and 2046; by 4 basis points in 2039 and for the 5% coupon bonds in 2047; by 5 basis points in 2038, 2042, 2048 and 2054; and by 6 basis points in 2049 and 2053.

Final yields ranged from 2.81% in 2036 to 4.34% in 2054.

The tax-exempt bonds were underwritten through TFA’s underwriting syndicate led by book-running lead manager Siebert Williams Shank, with BofA Securities, J.P. Morgan, Jefferies, Loop Capital Markets, Ramirez & Co., RBC Capital Markets, and Wells Fargo Securities serving as co-senior managers.

TFA also sold $250 million of taxable fixed rate bonds via competitive bid. The bid attracted 9 bidders, with Morgan Stanley winning at a true interest cost of 4.655%.

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