News
Public Finance Wrap-Up: April 2019
NYW Completes Successful Sale
The New York City Municipal Water Finance Authority (NYW) sold $500 million of fixed rate Second General Resolution Revenue Bonds via negotiated sale on April 8th. The bonds were issued for both new money and refunding purposes, with the refunding portion generating about $90 million of net present value savings.
Competitive General Obligation Bond Sale Attracts Many Bidders
The City of New York sold $120 million of fixed rate General Obligation Bonds maturing in 2028 through 2032 via competitive sale on April 11th. The sale drew 10 bidders, with Morgan Stanley winning the bonds at a true interest cost of 2.418%. This was a reoffering and conversion to fixed interest rates of bonds originally issued in FY 2008 as variable rate bonds.
NYC Bond Fact – Long Dated Bonds
New York City currently issues bonds that typically do not mature later than 30 years from issuance. This wasn’t the case in 1873, as bonds were sold with a 274-year final maturity. These bonds were issued in the last of six transactions to fund the construction of a road to one of the nation’s first racetracks. That road is now known as Jerome Avenue and the racetrack is now the site of Jerome Park Reservoir. New York City assumed the debt upon annexing the two communities that issued the bonds and has been paying interest on them all these years. The bonds bear a 7 percent interest rate with maturities ranging from 2001 to 2147.
As always, we appreciate your interest in New York City bonds.
Marj Henning
Deputy Comptroller for Public Finance