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Public Finance Wrap-Up: October 2021

November 8, 2021
Brooklyn’s Prospect Park in Autumn | Photo credit: Creative Family | Shutterstock

Hudson Yards Infrastructure Corporation Announces Successful Sale of $454 Million Green Bonds with Debt Service Savings of Over $269 Million

On October 21, the Hudson Yards Infrastructure Corporation (“HYIC”) sold approximately $454 million of tax-exempt Fiscal 2022 Series A Bonds. Proceeds were used to refund all outstanding Fiscal 2012 Series A First Indenture Bonds. The bonds were issued as Green Bonds, with a second party opinion from Kestrel Verifiers, marking the first ESG-labeled issuance by a City-related credit.

The refunding achieves approximately $269 million in total debt service savings, with nearly $17 million in each Fiscal Year 2023 through 2025 and nearly $10 million annually thereafter through Fiscal Year 2047. Refunding savings on a present value basis total nearly $212 million or 39.7% of the refunded par amount.

During a one-day retail order period for the tax-exempt bonds, HYIC received $190 million of retail orders, of which approximately $126 million was usable.  During the institutional order period, HYIC received approximately $641 million of priority orders, representing 2.0x the bonds offered for sale to institutional investors.  Yields were reduced by 2 basis points in the 4% coupon bond in 2036 and 1 basis point for the 2040 and 2044 maturities, and increased 1 basis point in the 2033 and 2034 maturities.  Final stated yields ranged from 0.51% in 2026 to 2.74% in 2047 for a 2.75% coupon bond.

The tax-exempt bonds were sold via negotiated sale by HYIC’s underwriting syndicate, led by joint lead managers Goldman Sachs & Co. and Ramirez & Co. Inc.

New York by the Numbers

On October 29, New York City published its Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2021. The report includes audited financial statements, outlines important economic and financial data about the City, and highlights the work of the Comptroller’s Office. The ACFR shows that the City completed the fiscal year with a General Fund surplus for the 41st consecutive year.

As usual, the Comptroller’s Office continues to track key economic indicators, including in its Monthly New York by the Numbers newsletter. Notably this month, real estate markets continued to strengthen, while more workers are returning to offices and to public transportation and more visitors are coming to the City’s hotels.

Looking Ahead

You can sign up on the City’s Comptroller’s website to receive notices of upcoming NYC bond sales. Click on “Join Mailing List” at the very top of the page. Bond sale announcements are also posted on the website.

Marj Henning
Deputy Comptroller for Public Finance

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$242 billion
Aug
2022