News
New York City Transitional Finance Authority Announces Successful Sale of $1.4 Billion Building Aid Revenue Bonds
The New York City Transitional Finance Authority (“TFA”) announced today the successful sale of approximately $1.4 billion of Building Aid Revenue Bonds, comprised of $1.2 billion of tax-exempt fixed rate bonds and $192 million of taxable fixed rate bonds. Proceeds will be used to refund outstanding Building Aid Revenue Bonds.
During the retail order period for individual investors, TFA received $887 million of orders for the tax-exempt bonds – the most received in TFA’s recent history – of which approximately $617 million was usable.
During the institutional order period, TFA received $1.6 billion of priority orders, representing over 2.7x the bonds offered for sale to institutional investors. Given the strong investor demand, TFA was able to reduce yields by 1 – 3 basis points in eleven out of sixteen years during the retail order period and institutional order period. Final stated yields ranged from 2.38% for the 2023 maturity to 3.57% for the 5% coupon bond maturing in 2037 and 3.98% for the 4% coupon maturing in 2038.
The tax-exempt bonds were sold via negotiated sale through an underwriting syndicate led by book-running lead manager Ramirez & Co. and joint lead manager Citigroup, with BofA Merrill Lynch and Jefferies serving as co-senior managers.
TFA also sold $192 million of taxable bonds via competitive bid. The bonds, which mature in 2019 through 2023, attracted eight bidders, with J.P. Morgan winning at a true interest cost of 3.297%.
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