BAB-Heavy Calendar in 1Q

New York State and New York City’s borrowing authorities plan to issue up to $5.72 billion of debt in the first quarter, of which $4.83 billion will be new money, according to a forward issuance calendar released by the state comptroller’s office last week.

The amount of new-money bonds expected to be issued has dropped compared to the $7 billion planned in the first quarter of 2009 and the $6.3 billion in the fourth quarter. Another change from a year ago is the use of taxable Build America Bonds. Out of 15 deals on the calendar, six, totaling $3.36 billion, include BABs.

The comptroller’s office produces the calendar to coordinate bond transactions among different issuers. The calendar is subject to change.

The Dormitory Authority of the State of New York plans to market the most debt this quarter of any issuer, issuing up to $1.51 billion of which $485.8 million will be refunding.

The state plans to sell $900 million of personal income tax bonds this quarter through DASNY and $450 million of general obligation bonds.

February will likely be the busiest month in the quarter, with $2.55 billion of transactions scheduled compared to $748.5 million this month and $1.54 billion in March.

New York City credits will be very active. The New York City Transitional Finance Authority plans to sell $1.25 billion of personal income tax bonds, the New York City Municipal Water Finance Authority plans $800 million of bonds, and the city itself plans $850 million of GOs.

Other issuers planning bond transactions this quarter include the New York State Environmental Facilities Corp., which looks to sell $335 million of new-money debt, and the New York State Thruway Authority, which plans to issue $525 million of new money on its dedicated highway and bridge trust fund credit .

Most of the debt will be marketed through negotiation. One state GO deal will be sold competitively. DASNY plans three private placements for conduit deals on behalf of educational institutions.

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