TFA Goes to Market

The New York City Transitional Finance Authority sold $758 million of future tax-secured, fixed-rate subordinate bonds last week by negotiated sale.

According to a spokesman for New York City Comptroller John Liu, the TFA sold $508 million of tax-exempt conversion bonds and $250 million of tax-exempt refunding bonds.

The TFA offered $348 million of conversion bonds for retail last Tuesday and received $171 million of retail orders.

At the final pricing after the institutional order period, the TFA was able to reduce yields on several maturities. Yields were reduced by nine basis points in the 2012 maturity and by one to five basis points in the 2018-2025 maturities. Final yields on the bonds ranged from 0.31% in the 2012 maturity to 4.1% in the 2031 maturity.

Bank of America Merrill Lynch was the book-running senior manager. Barclays Capital, Citi, Goldman, Sachs & Co., JPMorgan and Morgan Stanley were co-senior managers.

Standard & Poor’s and Fitch Ratings both rate the bonds AAA, while Moody’s Investors Service rates them Aa1.

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