New York City’s general obligation bond offering was raised by $100 million to $950 million after a record number of retail buyers expressed interest in then deal.
Ramirez & Co. priced NYC’s Fiscal 2018 Series C and D GOs after holding a retail order period on Monday and part of Tuesday for the deal, originally sized at $850 million.
For institutions, the $884.29 million of Fiscal 2018 Series C GOs were priced to yield from 1.55% with 4% and 5% coupons in a split 2019 maturity to 2.92% with a 4% coupon in 2034.
The $65.72 million of Fiscal 2018 Series D GOs were priced to yield from 1.25% with a 2% coupon in 2018 to 3.162% with a 3.125% coupon in 2035.
“We had an outstanding first day retail order period, with over $800 million in orders, including oversubscription in multiple maturities,” Devon Puglia, a spokesman for NYC Comptroller Scott Stringer, said in the morning. “We’ve seen strong demand and strong feedback from institutions, so much so that we expect to close retail orders and move to institutional pricing earlier than expected.”
On Tuesday morning, the $799.36 million of Fiscal 2018 Series C GOs were priced for retail to yield from 1.58% with 4% and 5% coupons in a split 2019 maturity to 2.96% with a 4% coupon in 2034. The $50.65 million of Fiscal 2018 Series D GOs were priced for retail on Tuesday to yield from 1.25% with a 2% coupon in 2018 to 3.18% with a 3.125% coupon in 2035.
On Monday, he $799.36 million of Series C GOs were priced for retail to yield from 1.60% with 4% and 5% coupons in a split 2019 maturity to 2.98% with a 4% coupon in 2034. The $50.65 million of Series D GOs were priced for retail to yield from 1.27% with a 2% coupon in 2018 to 3.20% with a 3.125% coupon in 2035.
The deal is rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings.
Since 2007, NYC has sold nearly $50 billion of bonds, with the most issuance occurring in 2008 when it offered $6.69 billion. The city saw a low year of issuance in 2011 when it sold $2.69 billion of bonds.
