New York State and New York City’s borrowing authorities plan to sell up to $4.39 billion of debt in the second quarter, of which $751.7 million will be refunding, according to a schedule released yesterday by the state comptroller’s office.
The level of volume will make this the slowest second quarter in at least two years. Last year’s collapse of the auction-rate securities market pushed volume up to $10.49 billion as refunding accounted for more than half of the second quarter’s issuance. Two years ago, second-quarter volume was scheduled for $827.4 million of refundings and $5.3 billion of new money.
The comptroller’s office puts out 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.
The volume of new-money debt on tap for this quarter is a decrease compared to the $7.89 billion that had been planned for the first quarter of the year. Refundings are also down compared to the $870.5 million scheduled in the first quarter.
The Dormitory Authority of the State of New York will be the largest single issuer, marketing some $1.35 billion of bonds, including a $465 million state-backed issue to fund mental health projects.
New York City plans to sell $2.08 billion through three of its credits. Most of that, $1.28 billion, will be on the city’s general obligation credit while the New York City Transitional Finance Authority will market $400 million of building aid revenue bonds, which are backed by state school construction aid, and the New York City Municipal Water Finance Authority aims to sell $400 million of bonds.
The state plans to sell $190 million of personal income tax bonds this quarter of through the New York State Housing Finance Agency. The HFA will also market $275.9 million of bonds for housing projects.
The Nassau County Interim Finance Authority plans to refund $305 million of bonds this month.
Only the Port Authority of New York and New Jersey plans to do competitive deals — the rest will be negotiated. The Port Authority, which yesterday sold $85.7 million of bonds, plans a $100 million deal in March.
June will likely be the busiest month with $1.41 billion of deals scheduled. All are planned to be new money. This month will be the slowest with $999.9 million of deals, of which $626 million will be refunding. May deals are scheduled to total $1.23 billion, including a single $125 million DASNY refunding.