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THE CITY OF NEW YORK ANNOUNCES SUCCESSFUL SALE OF $1.1 BILLION OF GENERAL OBLIGATION BONDS
The City of New York (“the City”) announced today the successful sale of approximately $1.1 billion General Obligation Bonds, comprised of $857 million of tax-exempt fixed rate bonds and $250 million of taxable fixed rate bonds.
During a two-day retail order period for the tax-exempt bonds, the City received $370 million of retail orders, of which approximately $339 million was usable.
During the institutional order period, the City received $1.6 billion of priority orders, representing 3.3x the bonds offered for sale to institutional investors. Given the strong investor demand, yields were further reduced by 2 – 3 basis points for several maturities in 2030 – 2033 and 2036 – 2039. Yields were reduced by 6 basis points for maturities in 2040 and 2041. Final stated yields ranged from 0.91% in 2019 for a 3% coupon bond to 2.84% in 2039 for a 5% coupon bond, 3.17% in 2041 for a 4% coupon bond and 3.38% in 2042 for a 3.25% coupon bond.
The tax-exempt bonds were sold via negotiated sale by the City’s underwriting syndicate, led by book-running senior manager Siebert Cisneros Shank & Co., L.L.C., with BofA Merrill Lynch, Citigroup, Goldman Sachs & Co. LLC, Jefferies, J.P. Morgan, Loop Capital Markets, Ramirez & Co. Inc. and RBC Capital Markets serving as co-senior managers.
The City also sold $250 million of taxable fixed rate bonds, comprised of two subseries, via competitive bid. The first subseries of approximately $191 million of bonds maturing in 2020 through 2027 attracted eight bidders, with BofA Merrill Lynch winning at a true interest cost of 2.620%. The second subseries of approximately $59 million of bonds maturing in 2028 and 2029 attracted nine bidders, with Jefferies winning at a true interest cost of 3.047%.
Download files:
New York City General Obligation Fiscal 2018 Series 1 Bonds Official Statement
New York City General Obligation Fiscal 2018 Series B Bonds Official Statement