New York City sold about $1.022 billion of general obligation bonds on Wednesday after receiving $356 million of retail orders over the two prior days, said a spokesman for city Comptroller John Liu.
Proceeds include $300 million of new money bonds and about $418 million of refunding bonds, according to the Liu spokesman.
The city also sold $125 million of taxable fixed-rate new money bonds, and roughly $179 million of tax-exempt fixed-rate bonds which will be converted from variable-rate demand bonds to fixed-rate bonds.
Strong investor demand at the institutional pricing made it possible to reduce yields by one to three basis points in six maturities. Final stated yields varied by coupon and maturity, ranging from 0.18% in 2014 to 4.28% in 2032.
The $897 million in tax-exempt bonds were sold through negotiated sale by the city’s GO syndicate, led by book-running senior manager Siebert Brandford Shank & Co. LLC, with Bank of America Merrill Lynch, Citi, Jefferies, JPMorgan, and Morgan Stanley serving as co-senior managers.
The city also sold $125 million in taxable fixed-rate new money bonds Wednesday through competitive bid. The winning bidder was BMO Capital Markets at a true-interest cost of 2.60%.
Additionally, the city expects to price $400 million of tax-exempt VRDBs around Oct. 15, bringing the total sale to roughly $1.422 billion.
Moody’s Investors Service rates the GO bonds Aa2, while Standard & Poor’s and Fitch Ratings each rate them AA.