New York State and New York City’s borrowing authorities plan to issue up to $6.17 billion of new-money bonds in the second quarter, according to a forward issuance calendar released by the state comptroller’s office last week. Additionally, issuers plan $1.53 billion of refundings and $186 million of conversions.
The amount of new-money bonds expected to be issued has increased compared to the $4.8 billion planned for the first quarter of 2010.
Noteworthy transactions on the calendar include New York City’s first issuance of qualified school construction bonds as part of a $900 million deal in June, a competitively priced $800 million state personal income tax deal through the Dormitory Authority of the State of New York in May, and a pooled $118 million financing on behalf municipalities by the New York Municipal Bond Bank Agency in May.
Issuers will continue to use the taxable Build America Bond program, with the four largest deals having a BABs component.
The comptroller’s office produces the calendar to coordinate bond transactions among different state and New York City issuers. The calendar is subject to change.
More than half of the debt on the calendar — $3.7 billion — is to be issued by DASNY. The state plans to sell $2 billion of personal income tax bonds through DASNY with an $800 million deal in May and a $1.2 billion deal in June — the largest single deal of the quarter.
June will likely be the busiest month in the quarter, with $2.87 billion of transactions scheduled compared to $460 million this month and $2.84 billion in May.
The city’s credits will be very active. The New York City Transitional Finance Authority plans to sell $900 million of PIT bonds and $350 million of building aid revenue bonds, the New York City Municipal Water Finance Authority plans $400 million of bonds, the city itself plans $900 million of GOs, and the New York City Educational Construction Fund plans $55 million.
Other issuers planning bond transactions this quarter include: the Long Island Power Authority, with $410 million of tax-exempts and BABs in May; the New York State Housing Finance Agency, which plans three deals totaling $176.3 million; the New York State Environmental Facilities Corp., which looks to sell $170 million of new-money and refunding bonds this month; the New York State Mortgage Agency with $200 million this month; and a $509 million refunding by the Empire State Development Corp.