N.Y. State Thruway Authority, Mortgage Agency to Sell $500M

The New York State Thruway Authority and the State of New York Mortgage Agency are scheduled to hold bond sales on Thursday totaling $500 million, with each following a Wednesday retail order period.

The Thruway Authority will sell $350 million of state transportation personal income tax revenue bonds, Series 2011.

According to the preliminary official statement, they will mature from 2012 through 2026.

A spokeswoman said proceeds will go toward reimbursement grants for municipalities and other project sponsors for highway, bridge and other projects.

According to the spokeswoman, the authority has about $2.52 billion of previously issued PIT bonds outstanding. Standard & Poor’s and Fitch Ratings have assigned AAA and AA ratings, respectively.

No refunding is scheduled with this issue.

The tax-exempt, fixed-rate bonds will be issued as serial bonds, uninsured with a 10-year par call. No swaps are involved.

Siebert Brandford Shank & Co. is the lead manager, while Public Resources Advisory Group Inc. is the financial advisor.

Sidley Austin LLP is bond counsel and Joseph C. Reid PA is co-counsel. William J. Estes and Hiscock & Barclay LLP are advising on certain matters.

The authority is one of five entities in the state that can issue PIT bonds.

SONYMA plans to sell $151.2 million of tax-exempt homeowner mortgage revenue bonds in two series — $66.8 million of Series 163 and $84.4 million of Series 164 bonds.

Neither series’ interest is subject to the federal alternative minimum tax.

Series 163 carries maturity dates from 2016 to 2019. Series 164 will mature from 2013 through 2016.

Morgan Stanley is the lead manager. Hawkins Delafield & Wood LLP is bond counsel, with Hiscock & Barclay counsel for the underwriters.

Moody’s Investors Service has assigned a Aa1 to the bonds.

Moody’s said the rating “reflects the homeowner mortgage revenue bonds [HMRB] program’s sound portfolio composition and performance, continuing strong and secure financial performance, and strong cash-flow projections, as well as oversight by a sophisticated management team.”

The agency, established in 1970, provides mortgage opportunities to low- and moderate-income families.

According to Moody’s, the bond proceeds will help provide funds for fixed-rate, home mortgage loans with terms of 30 or 40 years.

They will also provide funds for the agency’s down-payment assistance program; refund previous outstanding series under HMRB; and refund about $49 million of variable-rate debt.

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Transportation industry New York
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