NYC Bonds

During the month of November the Mayor’s Office of Management and Budget (“OMB”) released the November Financial Plan.  In addition the New York City Municipal Water Finance Authority (“NYW”) entered the market selling new money bonds; the Transitional Finance Authority closed its October $1 billion bond sale, and a General Obligation sale was announced for December.

$397 Million New York City Municipal Water Finance Authority

NYW sold $397 million of second resolution, fixed-rate, tax-exempt new money bonds via negotiated sale with M.R. Beal & Company, a Minority and Women Owned Business Enterprise (“M/WBE”) serving as book-running senior manager. 

This marks the fourth large fixed rate negotiated bond sale led by an M/WBE for New York City in calendar 2013 following $842 million G.O. sold in October, $800 million TFA sold in June and $543 million NYW sold in March.  Those deals were led by Siebert Brandford Shank & Co., L.L.C, Loop Capital and Ramirez & Co., respectively.  Overall M/WBEs have underwritten approximately $2.76 billion of New York City debt representing 30.88% of the total fixed rate negotiated bonds sold in calendar 2013.

The $397 million was offered in two coupons with 2046 maturities.  During final pricing, strong investor demand made it possible to reduce yields in the 5% coupon.

Fitch Ratings rates NYW’s second resolution bonds at AA+; Moody’s Investor Service rates these bonds at Aa2, and Standard & Poor’s rates them at AA+.

November Financial Plan

As required by the New York State Financial Emergency Act for the City of New York and the New York City Charter, OMB released a Financial Plan update on November 21st.  New York City prepares a four-year annual financial plan, which is reviewed and revised on a quarterly basis and which includes the City’s capital, revenue and expense projections and outlines proposed gap-closing programs for years with projected budget gaps.  You can download the November Plan from OMB’s website.

Looking Ahead

New York City will be selling tax exempt general obligation bonds, with a two day retail order period on Friday, December 6th and Monday, December 9th, during which individual investors will have priority in placing orders for the bonds.  We expect this to be the final City bond sale in 2013.

Bonds are not sold directly to the public, but if you would like more information about investing in New York City General Obligation bonds, please contact your financial advisor or broker.

Information on how to buy New York City bonds is also available on the Comptroller’s website.  You can subscribe on our website to receive sale announcements and other City publications and reports.  The New York State Comptroller also maintains a website with a preliminary forward calendar for major State and City issuers.

As always, we appreciate your interest in New York City bonds.  Please contact us if you have any questions or suggestions as to how we can improve our investor communications.

Carol S. Kostik          
Deputy Comptroller for Public Finance