News
The City Of New York Announces Sale of $1.5 Billion General Obligation Refunding Bonds
The City of New York (“the City”) announced today the sale of approximately $1.5 billion of General Obligation Bonds, comprised of approximately $1.1 billion of tax-exempt fixed rate bonds and $423 million of taxable fixed rate bonds. Proceeds from the sale will be used to refund outstanding bonds.
During a two-day retail order period for the tax-exempt bonds, the City received $302 million of orders from individual investors, all of which was usable.
The transaction was underwritten by a syndicate led by book-running lead manager Citigroup, with BofA Securities, Goldman Sachs & Co. LLC, Jefferies, J.P. Morgan, Loop Capital Markets, Ramirez & Co., Inc., RBC Capital Markets and Siebert Williams Shank & Co., L.L.C. serving as co-senior managers.
Final stated yields ranged from 0.95% in 2020 to 1.73% in 2036 for a 5% coupon bond.
The City also sold $423 million of taxable fixed rate bonds, comprised of two subseries, via competitive bid. The first subseries of approximately $134 million of bonds maturing in 2021 and 2022 attracted ten bidders, with J.P. Morgan winning at a true interest cost of 1.586%. The second subseries of approximately $290 million of bonds, which mature in 2031 through 2035 and are also callable at par in 2030, attracted nine bidders, with Morgan Stanley winning at a true interest cost of 2.500%.