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