NYC Bonds

The City of New York (“the City”) announced the successful sale of $950 million of General Obligation Refunding Bonds.

During the retail order period for the bonds, the City received $974 million of retail orders – the most received in recent history – of which approximately $740 million were usable.

Given the historic retail demand and strong market conditions, the City accelerated the transaction to price institutionally today. Additionally, the transaction was upsized by $100 million, from the original transaction size of $850 million to $950 million.

During the institutional order period, the City received $1.2 billion of priority orders, representing 9.8x the bonds offered for sale to institutional investors. All maturities offered to institutional investors were repriced at reduced yields. Yields were reduced by 2 basis points for the maturity in 2019, 1-3 basis points for maturities in 2023-2025 and 7-8 basis points for 5% coupon maturities in 2026-2034. Taking into account the reduction in yields earlier today during the second day of the retail order period, the City reduced yields by 8-12 basis points for maturities in 2026-2034. Final stated yields ranged from 1.25% in 2018 to 2.55% in 2033 for a 5% coupon bond, 2.84% in 2034 for a 4% coupon bond and 3.13% in 2035 for a 3.10% coupon bond.

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