News
New York City Transitional Finance Authority Announces Successful Sale of $813 Million of Building Aid Revenue Bond
The New York City Transitional Finance Authority (“TFA”) announced the successful sale of approximately $813 million of Building Aid Revenue Bonds, comprised of roughly $583 million of tax-exempt fixed rate bonds and just over $230 million of taxable fixed rate bonds. Proceeds from the sale will be used to refund certain outstanding bonds for savings.
During the retail order period for the tax-exempt bonds, TFA received just under $469 million of orders from retail investors, of which about $280 million was usable. The institutional order period garnered approximately $1.2 billion of priority orders, representing around 4.1x the bonds offered for sale to institutional investors.
Given the strong demand, yields were reduced by 3 basis points in 2022, 3-4 basis points for certain maturities in 2034 through 2041, by 2 basis points for maturities 2031 and 2032, and by 1 basis point in 2030. Final yields ranged from 0.10% in 2022 to 1.80% for the 3% bond maturing in 2041.
The tax-exempt bonds were underwritten through TFA’s underwriting syndicate led by book-running lead manager Loop Capital Markets, with Jefferies, and Siebert Williams Shank serving as co-senior managers.
The TFA also sold $230 million of taxable fixed rate bonds via competitive bid. The bid attracted 11 bidders, with J. P. Morgan Securities winning at a true interest cost of 1.135%.