News
THE CITY OF NEW YORK ANNOUNCES SUCCESSFUL SALE OF $900 MILLION OF TAX-EXEMPT GENERAL OBLIGATION REFUNDING BONDS
The City of New York (“the City”) announced the successful sale of approximately $900 million of General Obligation Refunding Bonds.
During a two-day retail order period for the bonds, the City received $621 million of retail orders – the most received in recent history – of which nearly $600 million was usable.
Given the strong retail demand, the refunding was upsized by approximately $100 million, from the original transaction size of $800 million to approximately $900 million.
During the institutional order period, the City received $785 million of priority orders, representing 2.6x the bonds offered for sale to institutional investors. Yields were reduced by 1 basis point for the 2024, 2025, 2026, 2027 and 2028 maturities. Final stated yields ranged from 0.72% in 2017 to 3.00% in 2029 for a 3% coupon bond.
The refunding bonds were sold via negotiated sale by the City’s underwriting syndicate led by book-running senior manager Citigroup, with BofA Merrill Lynch, Goldman, Sachs & Co., Jefferies, J.P. Morgan, Loop Capital Markets, Ramirez & Co., Inc., RBC Capital Markets, Siebert Cisneros Shank & Co., L.L.C. and Wells Fargo Securities serving as co-senior managers.