Issuers Eye $5.14B in 1Q

New York State and New York City’s borrowing authorities plan to issue up to $5.14 billion of new-money bonds in the first quarter, according to a forward-issuance calendar released last week by the comptroller’s office.

Issuers are also planning $1.68 billion of refunding bonds in the quarter.

The amount of new-money debt expected to be issued compares to the $8.77 billion of new-money bonds planned for the fourth quarter of 2010. The comptroller’s office produces the calendar to coordinate bond transactions among different state and New York City issuers. The calendar is subject to change.

The New York City Transitional Finance Authority will be the most active issuer. It plans to sell $1.75 billion of future tax-secured bonds in two deals. The city plans to offer a third deal, with a par of $750 million, as either TFA or general obligation bonds in March. The New York City Municipal Water Finance Authority plans to market $1.4 billion of bonds.

The Dormitory Authority of the State of New York, which has been the largest issuer in recent years, plans to market $1.25 billion of bonds. Most of those issues will be conduit deals on behalf of colleges, universities, and health care institutions.

However, DASNY also will competitively offer the state’s only personal income-tax bond deal of the quarter, with a $300 million issue scheduled for March.

January will likely be the busiest month in the quarter, with $2.02 billion of transactions scheduled compared to $1.77 billion in February and $1.35 billion in March.

The state plans to competitively offer $600 million of GOs in March. The deal will be a mix of tax-exempts and include the only taxable bonds on the calendar, representing a change from recent quarters when the taxable Build America Bond program made up a large portion of debt being offered.

Other issuers planning bond transactions this quarter include the New York City Educational Construction Fund, with $150 million, and the Port Authority of New York and New Jersey, with $300 million, both in January.

Also on tap is the New York State Thruway Authority, which will offer a $440 million dedicated highway and bridge trust fund deal in February; the New York State Environmental Facilities Corp., with $150 million in February; and the New York State Housing Finance Agency, with $32 million in January.

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