News
New York City Transitional Finance Authority Announces Successful Sale of $564 Million of Building Aid Revenue Bonds
The New York City Transitional Finance Authority (“TFA”) announced the successful sale of approximately $564 million of Building Aid Revenue Bonds, comprised of roughly $492 million of tax-exempt fixed rate bonds and just under $72 million of taxable fixed rate bonds. Proceeds from the sale will be used to refund certain outstanding bonds for savings. The refunding achieves approximately $74 million in total debt service savings, which is primarily spread evenly across Fiscal Years 2023 through 2026.
During the retail order period for the tax-exempt bonds, TFA received approximately $526 million of orders from retail investors, of which over $390 million was usable. During the institutional order period, TFA received approximately $190 million of priority orders, representing 1.7x the bonds offered for sale to institutional investors.
Final yields ranged from 1.44% in 2023 to 3.83% for the 4% coupon in 2039.
The tax-exempt bonds were underwritten through TFA’s underwriting syndicate led by book-running lead manager RBC Capital Markets, with BofA Securities and Siebert Williams Shank serving as co-senior managers.
TFA also sold $72 million of taxable fixed rate bonds via competitive bid. The bid attracted 12 bidders, with Morgan Stanley winning at a true interest cost of 3.579%.