New York City sold $12.8 billion of bonds in fiscal 2013 including $6.8 billion of new-money bonds for capital projects and $6 billion in refinancings, a finance official said Friday.
According to Carol Kostik, the city’s deputy comptroller for public finance, the total includes issuance under general obligation, Transitional Finance Authority and Municipal Water Finance Authority credits.
TFA bonds sales finance the city’s capital program.
Kostik said gross savings to those three credits through refinancings totaled $917 million, or more than $786 million on a present-value basis with future savings discounted back to the sale date. She said the city expects to realize $582 million of budget savings in fiscal 2014 and 2015.
The city adopted its $70 billion operating budget for fiscal 2014 and four-year financial plan on June 27.
“While some investors may be disappointed to lose the high-coupon bonds we are refinancing, these budget savings are important. We continue to monitor refinancing opportunities,” Kostik said in a statement.
The city sold just over $1.5 million in June, including $800 million of TFA future tax secured tax-exempt subordinate bonds. The authority received $224 million of retail orders during a two-day retail period.
Also last month, New York Water sold $344 million of second-resolution, fixed rate tax-exempt bonds, which included $293 million of new money and $51 million in refunding. In addition, the New York State Environmental Facilities Corp., as part of a combined plan of finance with New York Water, sold $401 million in refunding.
The city expects to announce details about its July GO bond sale later this month, according to Kostik.
Moody’s Investors Service rates the GO bonds Aa2, while Fitch Ratings and Standard & Poor’s assign AA ratings.
