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The City Of New York Announces Successful Sale of $197 Million of General Obligation Stepped-Coupon Bonds

August 7, 2019

The City of New York (“the City”) announced today the successful sale of approximately
$197 million of General Obligation tax-exempt stepped-coupon bonds.  The bonds were previously variable rate bonds and are being converted to fixed rate stepped-coupon bonds.

The bonds mature in 2038 and may be optionally redeemed at par on August 1, 2023. The interest rate on the bonds will step up to 9% on February 1, 2024 (“step-up date”) if the bonds are not remarketed, converted to another interest rate mode or redeemed.

During the retail order period, the City received approximately $40 million of orders from individual investors, all of which were usable. The final yield for the bonds was increased by 2 basis points from the beginning of the institutional order period.

The final stated yield for the bonds was 1.19%.

The tax-exempt stepped-coupon bonds were sold via negotiated sale through the City’s underwriting syndicate, led by book-running lead manager Morgan Stanley, with BofA Merrill Lynch, Citigroup, Goldman Sachs & Co. LLC, J.P. Morgan, Jefferies, Loop Capital Markets, Ramirez & Co., Inc., RBC Capital Markets and Siebert Cisneros Shank & Co., L.L.C. serving as co-senior managers.

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Under no circumstances shall the information on this website constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers to purchase securities may be made only through a registered broker-dealer and through an official statement.

The information contained on this website has been included for general informational purposes only and no person should make any investment decision in reliance upon the information contained herein.

Bonds may not be sold, nor may an offer to buy be accepted, prior to the time an Official Statement is delivered in final form. A definitive Official Statement with respect to any bonds will be made available concurrently with their sale. A Preliminary Official Statement for any bonds may be obtained from the firms listed on the cover of the Preliminary Official Statement and on this website.

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$242 billion
Aug
2022