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Public Finance Wrap-Up: December 2020
Financings in December
The Comptroller’s Office successfully completed two financings during the month of December and remains active in monitoring markets and identifying opportunities. Information on upcoming financings will be announced via our website.
New York City Municipal Water Finance Authority (NYW)
NYW offered $534 million of revenue bonds in December, in a transaction comprised of new money and refunding bonds. On December 1, NYW held a priority order period for individual investors and received over $119 million in retail orders. On December 2, institutional investors responded with over $1 billion in orders. Due to this strong investor demand, NYW increased the transaction size by approximately $55 million to take advantage of low interest rates. Siebert Williams Shank & Co., LLC served as book-running lead manager on the transaction.
The City of New York General Obligation Refunding Bonds
On December 15th, The City of New York offered $1.5 billion of fixed rate taxable refunding bonds through a negotiated sale. Bonds were offered to institutional investors, who responded with over $5.2 billion of indications, representing approximately 3.5x the bonds offered for sale. Due to this strong investor demand, The City was able to reduce yields by 2-10 basis points across various maturities. Proceeds from the bond sale will be used to advance refunding certain outstanding bonds to achieve debt service savings in the respective amounts of $33.5 million and $171.7 million in Fiscal Years 2021 and 2022. The underwriting syndicate was led by book-running lead manager Jefferies, with Loop Capital and Siebert Williams Shank serving as co-senior managers.
The State of the City’s Economy and Finances
On December 15th, the Comptroller’s Bureau of Budget released “The State of the City’s Economy and Finances”, an extensive report on the current state of New York City’s economy. The report also includes a review of the City’s Capital Budget and Financing Program for Fiscal Years 2021 through 2024. To view the report in its entirety, click here.
Financial Plan and Economic Updates
The Comptroller’s Office continues to provide updated economic and fiscal information in our New York by the Numbers – Weekly Economic and Fiscal Outlook. The Comptroller’s Cash Report and Cash Projection report are also excellent resources. To view both visit the Comptroller’s Cash Report page and Cash Projection page.
Best Wishes for a Prosperous New Year
As the year comes to an end, and we approach 2021 with hope and enthusiasm, we want to extend our best wishes to you and your family. We trust that 2021 will be a transformative year for our City and for us all.
Marj Henning
Deputy Comptroller for Public Finance
Discover New York – The High Line
A 1.45-mile-long elevated linear park near 12th Avenue in Manhattan, the High Line runs from 14th Street to 34th Street. Built over an abandoned railroad terminal that was repurposed in 2009 to become a tree-lined walkway filled with ecological diversity, the High Line is an oasis of urban architecture and enjoyment that features eateries and spaces for physical activity. Throughout the year, the High Line offers events, educational courses and fun activities such as Salsa dancing in the summer, among other family-oriented opportunities. In 2019, more than eight million visitors experienced the High Line. Since its buildout, the High Line has inspired other cities to redevelop abandoned and obsolete infrastructure into public spaces both residents and visitors can enjoy.
The Highline, New York | Photo Credit: Francois Roux /Shutterstock