News
The City of New York Announces Successful Sale of $688 Million of General Obligation Bonds
The City of New York (“the City”) announced the sale of $688 million of tax-exempt fixed rate General Obligation bonds. Proceeds of the bond sale will be used to refund certain outstanding bonds for savings. The refunding achieves approximately $37 million in total debt service savings, which are spread approximately evenly across Fiscal Years 2024 through 2027.
During the retail order period for the bonds, the City received over $587 million of orders from retail investors, of which nearly $490 million was usable.
Final yields ranged from 2.83% to 3.36%.
The bonds were underwritten through a syndicate led by book-running lead manager Siebert Williams Shank, with BofA Securities and RBC Capital Markets serving as co-senior managers.
This marks the first transaction since Fitch Ratings (“Fitch”) upgraded the City’s General Obligation bond rating to AA from AA- on February 17, 2023. A link to Fitch’s Rating Action Commentary can be found here.
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