New York City Transitional Finance Authority sold $760 million of future tax secured fixed-rate subordinate bonds, including $650 million of tax-exempt new money bonds and $110 million of taxable new money bonds.
The TFA received about $200 million of retail orders for the tax-exempt bonds during the two-day retail order period that preceded the April 8 pricing. Investor demand made it possible to reduce yields by one to four basis points in nine maturities, according to a spokesman for New York City Comptroller Scott Stringer.
Final stated yields on the $650 million of tax-exempt fixed-rate bonds varied by coupon and maturity, ranging from 0.34% in 2016 to 4.20% in 2041. The TFA's financing syndicate sold the bonds via negotiation, led by book-running senior manager Bank of America Merrill Lynch with Barclays, Goldman, Sachs & Co., JPMorgan, Loop Capital Markets LLC, Morgan Stanley and Wells Fargo serving as co-senior managers.
The taxable bonds were sold competitively, and TFA received nine bids for the $110 million offered. RBC Capital Markets submitted the winning bid with a true interest cost of about 3.12%.
The TFA also intends to price $200 million of tax-exempt new money variable-rate demand bonds on April 28, bringing the total sale to $960 million.
Standard & Poor's and Fitch Ratings rate the subordinate lien bonds AAA. Moody's Investors Service rates them Aa1.
The state legislature created the TFA in 1997 to enable the city to get around general obligation debt limits.
