News
The City of New York Announces Successful Sale of $2.04 Billion of General Obligation Bonds
The City of New York (the “City”) announced the successful sale of approximately $2.04 billion of General Obligation Bonds, comprised of $1.99 billion of tax-exempt fixed rate bonds and $49 million of taxable fixed rate bonds.
Proceeds from the sale will be used to fund capital projects and refund certain outstanding bonds for savings.
The refunding portion of the transaction achieves approximately $22.5 million in total debt service savings, primarily spread evenly across Fiscal Years 2027 through 2030.
For the tax-exempt bonds, the City received over $799 million of orders during the retail order period and $3.3 billion of priority orders during the institutional order period, in total representing 2.1x the principal amount. Final yields ranged from 3.52% in 2027 to approximately 5.53% in 2055.
The taxable bonds mature in 2028 with a final yield of 5.245%.
The bonds were underwritten through a syndicate led by led by book-running lead manager Jefferies, with BofA Securities, J.P. Morgan, Loop Capital Markets, Ramirez & Co., Inc., RBC Capital Markets, Siebert Williams Shank, and Wells Fargo Securities serving as co-senior managers.