The New York CityHealth and Hospitals Corp. plans to sell $189 million of tax-exempt variable-rate demand bonds on Wednesday to refinance auction-rate securities sold in 2002.
With the sale of these bonds, HHC will exit the auction-rate market. The agency sold $271.2 million of fixed-rate bonds last week to convert a large portion of its ARS. HHC auctions began to fail in mid-February and have continued to fail ever since. Although interest rates did reset as high as 5.44% on one series in February, they have tended to reset below 4% in recent months, according to Bloomberg LP.