The New York State Thruway Authority approved two state-backed tax-exempt bond deals totaling $716 million at its board meeting yesterday.
The largest issue was a $426 million new-money personal income tax deal expected to price on May 27 with a one-day retail order period followed by institutional pricing.
The bonds are secured by 25% of state income tax receipts and the proceeds will be used to provide grants for highway and bridge projects.
RBC Capital Markets is book-running senior manager and Loop Capital Markets LLC is co-coordinating senior manager on the fixed-rate serial bonds that will have maturities out to 2029.
First Southwest Co. is financial adviser and Harris Beach PLLC is bond counsel.
Five issuers - the Thruway Authority, the Empire State Development Corp., the New York State Environmental Facilities Corp., the New York State Housing Finance Agency, and the Dormitory Authority of the State of New York - issue PIT bonds on behalf of the state. The state has approximately $13.7 billion of PIT bonds outstanding.
Standard & Poor's rates the outstanding debt AAA and Fitch Ratings assigns it a AA-minus. Moody's Investors Service does not rate recent PIT issues.
The authority also approved a $290 million dedicated highway and bridge trust fund bond sale that is expected to price in July. The state uses the bond proceeds to reimburse state transportation department expenditures for the state's multi-year highway and bridge capital program.
Goldman, Sachs & Co. is book-running senior manager and Siebert Brandford Shank & Co. is co-coordinating manager on the new-money deal. The bonds will be marketed as serials with maturities out to 2029.
First Southwest is financial adviser and Nixon Peabody LLP is bond counsel.
About $6.66 billion of trust fund bonds are outstanding. Standard & Poor's rates the trust fund debt AA and Fitch rates it AA-minus. Moody's does not rate recent trust fund deals.
