News
The City Of New York Announces Successful Sale Of $955 Million Of General Obligation Bonds
The City of New York (“the City”) announced the sale of approximately $955 million of General Obligation bonds, comprised of roughly $901 million of tax-exempt fixed rate bonds and $54 million of taxable fixed rate bonds. Proceeds of the bond sale will be used to refund certain outstanding bonds for savings. The refunding achieves approximately $115 million in total debt service savings, which are spread approximately evenly across Fiscal Years 2023 through 2026.
During the retail order period for the tax-exempt bonds, City received just over $185 million of orders from retail investors, of which over $165 million was usable. During the institutional order period, the City received approximately $1.9 billion of priority orders, representing 2.6x the bonds offered for sale to institutional investors.
Given investor demand, yields were reduced by 1 basis point in 2027, 2029, 2030, and 2031, by 4 basis points in 2032 through 2035, and by 3 basis points in 2036. Final yields ranged from 1.31% in 2022 to 2.85% in 2036.
The tax-exempt fixed rate bonds were underwritten through a syndicate led by book-running lead manager Citigroup, with Jefferies and Ramirez & Co. serving as co-senior managers.
The City also sold $54 million of taxable fixed rate bonds via competitive bid. The bid attracted 11 bidders, with J.P. Morgan Securities winning at a true interest cost of 2.2969%.