New York City will sell $800 million of tax-exempt, fixed-rate general obligation refunding bonds through negotiation on May 22, according to a spokesman for city Comptroller John Liu.
A two-day retail order period will precede the sale.
Book-running senior manager Bank of America Merrill Lynch will lead the sale, with Citi, JPMorgan, Jefferies, Morgan Stanley and Siebert Brandford Shank & Co. LLC serving as co-senior managers.
Moody's Investors Service rates the bonds Aa2, while Fitch Ratings and Standard & Poor's assign AA ratings. The city has about $41 billion in GO debt outstanding.
The city in late February
Municipal strategists at Citi estimate that such issuance could reach $10 billion by year's end. Interest rates for floaters reset regularly, often monthly or quarterly, and tied to a benchmark rate from either the Securities Industry and Financial Markets Association seven-day swap rate or the one- or three-month London Interbank Offered Rate - plus a fixed spread negotiated at issuance.
New York's Metropolitan Transportation Authority has used floaters for roughly a year.
