New York City will offer about $1.3 billion of general obligation bonds in September and October to fund capital projects and reduce interest rate risk.
The offering will be comprised of about $860 million of tax-exempt fixed rate bonds, $250 million of taxable fixed-rate bonds and $200 million of tax-exempt variable-rate demand bonds, the city comptroller's office announced on Monday.
The city’s underwriting syndicate will be led by book-running senior manager Siebert Cisneros Shank & Co., with Bank of America Merrill Lynch, Citigroup, Goldman Sachs, Jefferies, J.P. Morgan, Loop Capital Markets, Ramirez & Co. and RBC Capital Markets serving as co-senior managers.
The tax-exempt fixed-rate bonds are expected to be priced for institutions on Thursday, Sept. 14. A two-day retail order period will be held on Tuesday, Sept. 12 and Wednesday, Sept. 13.
Also on Thursday, Sept. 14, the city intends to competitively sell $250 million of taxable fixed-rate new money bonds.
The city intends to offer an additional $200 million of tax-exempt variable-rate demand bonds on Monday, Oct., 2017.
Proceeds from the sales will be used to fund capital projects, with the exception of proceeds from approximately $310 million of the tax-exempt fixed-rate bonds, which will be used to convert certain outstanding variable-rate demand bonds into fixed-rate bonds.
