The New York City Municipal Water Finance Authority plans to sell $450 million of fixed-rate, tax-exempt new money bonds on Tuesday, after a one-day retail order period.
The second-resolution bonds will consist of $400 million in Series FF and $50 million in Series GG.
According to a spokesman for city Comptroller John Liu, the financing will use New York Water’s underwriting syndicate, with Jefferies & Co. serving as book-running senior manager.
Barclays Capital, M.R. Beal & Co., Ramirez & Co. and Raymond James|Morgan Keegan will be co-managers.
Fitch Ratings and Standard & Poor’s rate the bonds AA-plus, while Moody’s Investors Service assigns its Aa2 rating.
The authority 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, according to the authority’s preliminary official statement.
Orrick, Herrington & Sutcliffe LLP is bond counsel, while Nixon Peabody LLP is representing the underwriters. Financial advisors are Lamont Financial Services Corp., Drexel Hamilton LLC and Acacia Financial Group Inc.
On March 6, New York Water sold $523 million of bonds -- $445 million in new money and a $78 million refunding. During the one-day retail order period, it received $60 million of orders. The sale was upsized from the $500 million printed on the preliminary statement. Yields at final pricing ranged from 1.60% in the 2019 maturity to 4.16% in the 2045 maturity.
The water agency also issued $400 million on Jan. 23. Yields at final pricing ranged from 1.22% in the 2018 maturity to 3.94% in the 2045 maturity.
