The New York State Thruway Authority plans to issue $779.3 million of second general highway and bridge trust fund bonds, Series 2012A, on Wednesday by negotiated bid.
Bank of America Merrill Lynch is the lead manager.
Public Financial Management Inc. and ButcherMark Financial Advisors LLC are the financial advisors.
Hiscock & Barclay LLP and the Law Offices of Joseph C. Reid PA is bond counsel.
William J. Estes Esq. is general counsel to the authority and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC is counsel to the underwriters.
The bonds, which are structured as serials and will mature from 2013 to 2032, are special obligations of the authority secured by a pledge of certain payments to the Thruway Authority from funds held in the dedicated highway and bridge trust fund.
Fitch Ratings and Standard & Poor’s each assign a AA rating to the bonds. Their outlooks are positive and stable, respectively.
Standard & Poor’s cited the diversity of New York’s economy, the state’s history of periodically increasing taxes flowing into the pledged funds, the authority’s strong 2.23 times historical coverage of combined first- and second-lien maximum annual debt service by fiscal 2011 pledged revenues, and a strong two times additional bonds test.
According to the rating agency, offsetting factors include the lack of a debt-service reserve, along with the state’s ability to change tax rates and the percent distribution of taxes that flow into the pledged highway bridge and trust fund under state law.
Last week, the authority sold $235 million of fixed-rate, tax-exempt Series 2012A local highway and bridge service contract refunding bonds, though through negotiated bid.
It expects $22 million in present-value savings through the refinancing, according to an official.
The Thruway Authority operates the 570-mile highway system throughout New York State as well as the Tappan Zee Bridge connecting drivers between Rockland and Westchester counties.