NYC Bonds

News

New York City Transitional Finance Authority Announces Successful Sale of $1.45 Billion Future Tax Secured Subordinate Bonds

March 26, 2019

The New York City Transitional Finance Authority (“TFA”) announced today the successful sale of approximately $1.45 billion of future tax secured subordinate bonds, comprised of $850 million of tax-exempt fixed rate bonds and $600 million of taxable fixed rate bonds.

During the retail order period for individual investors, TFA received $294 million of orders for the tax-exempt bonds, of which approximately $209 million was usable.

During the institutional order period for the tax-exempt bonds, TFA received $1.2 billion of priority orders, representing 1.9x the bonds offered for sale to institutional investors.  At the repricing following the institutional order period, yields were decreased by 1 – 2 basis points for maturities in 2036—2038 and by 1 basis point for the 2042 maturity.  Final stated yields ranged from 1.53% for the 2020 maturity to 3.16% for the 4% coupon bond maturing in 2042, 3.30% for the 3.25% coupon bond maturing in 2043 and 2.81% for the 5% coupon maturing in 2043.

The tax-exempt bonds were sold via negotiated sale through an underwriting syndicate led by book-running lead manager Goldman Sachs & Co. LLC, with BofA Merrill Lynch, Citigroup, Jefferies, J.P. Morgan, Loop Capital Markets, Ramirez & Co., Inc., RBC Capital Markets and Siebert Cisneros Shank & Co., L.L.C. serving as co-senior managers.

TFA also sold $600 million of taxable fixed rate bonds, comprised of two subseries, via competitive bid.  The first subseries of approximately $300 million of bonds maturing in 2021 through 2028 attracted nine bidders, with J.P. Morgan winning at a true interest cost of 2.838%. The second subseries of also $300 million of bonds, which mature in 2028 through 2033 and are also callable at par on May 1, 2029, attracted nine bidders, with RBC Capital Markets winning at a true interest cost of 3.440%.

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