New York City Water to Sell $400 Million

The New York City Municipal Water Finance Authority intends to sell $280 million of new money bonds and $120 million of refunding bonds on Tuesday, after a one-day retail period.

Citi will be book-running senior manager for New York Water on the transactions, which will feature second resolution, fixed-rate, tax-exempt Series 2013EE bonds.

Barclays Capital, M.R. Beal & Company, Ramirez & Co. and Raymond James will serve as co-senior managers.

Standard & Poor's rates the bonds AAA, while Moody's Investors Service and Fitch Ratings assign Aa1 and AA-plus ratings, respectively. New York Water has $29 billion of debt outstanding.

New York Water on March 12 sold $543 million after a retail order day produced $74.3 million of orders. Yields to maturity at the final pricing ranged from 3.257% in 2027 to 4.158% in 2038, varying by coupon and maturity.

The agency provides more than 1 billion gallons of water daily to 9 million customers. Of that total, 8.2 million are in New York City and the rest are in Westchester, Putnam, Orange and Ulster counties.

It draws its water for the system from the Croton, Catskill and Delaware reservoir systems upstate and a system of wells in New York City's Queens borough that it acquired as part of the city's purchase of the Jamaica Water Supply Co. in 1996.

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