New York City replaced the bankrupt Lehman Brothers as the remarketer of $612.6 million of variable-rate debt with other investment banks, city officials announced Friday.
The city had $1.11 billion of such debt remarketed by Lehman at the beginning of last week, including $875 million of New York City Transitional Finance Authority debt and $261 million of general obligation debt.
The change in remarketing agent affects $260.7 million of tax-exempt GOs and $376.5 million of taxable and tax exempt TFA debt. All of the debt is in daily mode. The $189.5 million of GOs sold in fiscal 1994 was reassigned to JPMorgan and has a letter of credit from JPMorgan Chase. Banc of America Securities LLC has taken over $71.2 million of GOs sold in fiscal 1994 and fiscal 2004 that have a letter of credit from KBC Bank.
The TFA reassigned $199.5 million of Series 2003 3-B tax-exempt bonds to JPMorgan. These bonds have a standby bond purchase agreement from Citibank. The TFA also reassigned $177 million of Series 2002B taxable bonds to JPMorgan. These bonds have a standby bond purchase agreement from WestLB.
The city said in a press release that it expects to reassign the remaining variable-rate debt remarketed by Lehman in the near future.