New York State and New York City's borrowing authorities plan to sell up to $10.49 billion of debt in the second quarter, of which $4.85 billion will be new money and more than half, $5.64 billion, will be refundings largely by borrowers getting out of auction-rate-securities, according to a schedule released yesterday by the state comptroller's office.
The large number of refundings is unusual. Last year's second-quarter forward calendar identified $827.4 million of refundings and $5.3 billion of new money.
The volume of new-money debt on tap for this quarter is a decrease compared to the $5.03 billion that had been planned for the first quarter of the year, but refundings are up compared to a planned $1.09 billion last quarter.
The majority of the deals - 21 out of 34 - are expected to be sold by the Dormitory Authority of the State of New York,which last month approved more than a dozen restructurings of auction-rate and variable-rate debt. DASNY plans to market $4.48 billion of bonds over the quarter of which $3.08 billion will be refundings.
The state plans to sell $661 million of personal income tax bonds this quarter of which $150 million marketed by the New York State Housing Finance Agency will be new money.
Only one deal, a $300 million offering by the Port Authority of New York and New Jersey in May, is slated as competitive. Another, a $200.4 refunding of state general obligation bonds in May, has yet to be decided whether it will be competitive or negotiated. The rest of the deals in the quarter will be negotiated.
The comptroller's office issues the schedule to make sure bond issues from state and city issuers do not crowd each other by having too many scheduled on the same day. The sales schedule is subject to change.
This month will likely be the busiest with $3.91 billion of deals, of which $1.8 billion will be new money. DASNY leads the pack in volume this month with $1.66 billion of deals, which includes $712 million of new money.
Volume would decrease in May with $3.71 billion of planned bond sales. DASNY will be responsible for the largest portion of the month's volume as well, marketing $1.1 billion of debt, of which $207.4 million will be new money.
June is expected to be the slowest month of the quarter with bond sales totaling up to $2.88 billion. DASNY again plans to market the most debt that month with $1.72 billion of bonds, of which $485 million will be new money.
New York City plans to sell $700 million of GOs this month. In addition, it plans to sell $650 million of building aid revenue bonds for school construction through the New York City Transitional Finance Authority next month. The city also plans to sell $450 million of bonds through New York City Municipal Water Finance Authority in May.
The Empire State Development Corp. will come to market once with a PIT bond refunding of $300 million.
The HFA plans to sell $230 million of PIT-bonds this month of which $80 million will be refunding.
The Long Island Power Authority plans to market $975 million of bonds this month of which $205 million will be new money.
The state's Municipal Bond Bank Agency also plans to sell $37 million of bonds this month.
The state Environmental Facilities Corp. plans to sell $550 million of bonds for the city MWFA in May and $150 million of bonds on its clean water/drinking water state revolving fund credit in June.
The New York State Thruway Authority to refund $530 million of consolidated local street and highway improvement program bonds in May and to sell $355 million of new-money bonds in June on its second resolution general highway and bridge trust fund credit.
The state plans to refund $200.4 million of GOs in May, and the Local Government Assistance Corp. plans to refund $587.1 million that month as well.
Meanwhile, negotiations over the fiscal 2009 budget continued yesterday as rumors circulated that work would continue into the weekend. The budget deadline passed on midnight Monday without an agreement on the approximately $124 billion budget. The Legislature, which has already passed budget bills dealing with debt service, health care and public safety was expected to take up transportation and economic development bills last night.