ESDC Eyes PIT Refunding

The Empire State Development Corp.’s bond financing committee last week approved the submission of an application to a state oversight board for refunding bonds in an upcoming $382 million issue.

The bonds, Series 2008C and 2008D, would be backed by state personal income tax. The refunding portion would refund certain outstanding PIT bonds. The refunding will go to the full board for approval later this month before it goes to the Public Authorities Control Board, which approved the new-money portion last month.

“It’s possible we will not actually issue any refunding bonds, but we want to have the authorization in place in case market conditions warrant it, and if the state decides it wants to enter into interest rate swaps if the refundings were not in the money on their own,” ESDC chief financial officer Frances Walton said.

The refunding bonds could be issued as variable rate, fixed rate, or a combination. Bond counsel and the underwriting syndicate have not yet been selected.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER