News
Public Finance Wrap-Up: January 2019
NYW Completes Successful Sale
The New York City Municipal Water Finance Authority (NYW) sold $475 million of tax-exempt Second General Resolution Revenue Bonds on January 16. Heavy interest in the deal’s Refundable Principal Installments (RPIs) that mature in 2024 and 2025 allowed for an upsize of the sale, increasing the amount of bonds available. With strong investor demand, NYW reduced yields on the RPIs by 4-5 basis points. Barclays served as book-running lead manager for the negotiated deal. Proceeds from the new money sale will fund capital improvements to the City’s water and sewer systems.
NYC Bond Fact – The Weather Outside is Frightful
According to a 2015 Comptroller report, the average cost of snow removal in New York City was $1.8 million per inch between Fiscal Years 2003 and 2014. The Department of Sanitation’s fleet of collection trucks and other equipment are assigned the monumental task of clearing the streets. The 2018-2027 Ten-Year Capital Strategy included $1.6 billion for the replacement of Department of Sanitation equipment at the end of its useful life. Bond proceeds fund these and other capital assets that have a useful life of five years or more.
Looking Ahead
NYW expects to competitively offer $450 million of tax-exempt Second General Resolution Revenue Bonds during the week of February 25. The City of New York plans to offer $950 million of General Obligation Bonds the following week of March 4.
As always, we appreciate your interest in New York City bonds.
Marj Henning
Deputy Comptroller for Public Finance