Proceeds from New York City’s upcoming sales of $1.4 billion of bonds will be used to fund various capital projects, the city announced on Tuesday.
The city will sell about $1.4 billion of general obligation bonds, comprised of approximately $890 million of tax-exempt fixed-rate bonds, $250 million of taxable fixed-rate bonds and $250 million of tax-exempt floating-rate bonds.
Proceeds will be used to fund capital projects with the exception of about $190 million of the tax-exempt fixed-rates, which will be used to convert certain outstanding floating rate bonds into fixed-rates.
The tax-exempt fixed-rates are expected to be priced on Thursday, Feb. 22, through the city’s underwriting syndicate led by book-running senior manager Jefferies. Bank of America Merrill Lynch, Citigroup, Goldman Sachs, JPMorgan Securities, Loop Capital Markets, Ramirez & Co., RBC Capital Markets, and Siebert Cisneros Shank & Co. will serve as co-senior managers. There will be a two-day retail order period on Feb. 20-21.
Also on Thursday, Feb. 22, the city expects to competitively sell $250 million of taxable fixed-rate bonds.
The week of March 12, the city plans to sell $250 million of tax-exempt floating rate bonds, bringing the total sales amount to $1.4 billion.