TFA Sells $900M in Bonds

The New York City Transitional Finance Authority sold $900 million of future tax-secured, fixed-rate new money subordinate bonds.

It featured $800 million of tax-exempt bonds and $100 million of taxable qualified school construction bonds.

According to a spokesman for city Comptroller John Liu, the TFA received about $265 million of retail orders during the one- and one half-day retail order period, selling out the first nine maturities (2014 through 2022).

A syndicate led by Barclays conducted the negotiated sale for the tax-exempt bonds, with Bank of America Merrill Lynch, Citi, Goldman Sachs, JPMorgan and Morgan Stanley the co-senior managers.

The TFA received 10 bids on the $100 million of school bonds, with a single maturity in February 2034. Citi made the winning bid with a true interest cost of 3.977%.

Standard & Poor’s and Fitch Ratings each assigned AAA ratings to the subordinate-lien bonds, while Moody’s Investors Service rates them Aa1.

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