N.Y.C. Sells $214 Million of GOs, Including Taxables

New York City Tuesday will issue $213.5 million of general obligation debt through competitive bid, including $130 million of taxable bonds.

Proceeds from the taxable portion will help support construction of affordable housing and economic development projects, said Alan Anders, deputy budget director in the Office of Management and Budget.

All three major bond-rating agencies rate the city’s GO credit double-A.

Public Resources Advisory Group and A.C. Advisory Inc. are the financial advisers. Sidley Austin LLP is bond counsel.

The taxable piece includes $30 million of Series 2011 J-1 bonds that mature from 2013 through 2016, and $100 million of Series 2011 J-2 bonds, with $10 million of debt maturing annually from 2017 through 2026, according to the preliminary official statement.

“There are some smaller pieces, so firms with a smaller capital basis can have an opportunity to bid if they want to, and we’re pleased that it worked out that way,” said Carol Kostik, deputy comptroller for public finance.

In addition, the city plans to convert $83.5 million of Series 1994A and Series 1999H variable-rate demand bonds into fixed-rate mode, with debt maturing in 2012, 2021, and 2023, according to the POS. Officials are looking to use the letter-of-credit capacity for future new-money floating-rate bond issuance.

“What we’re doing there is recycling the VRDB capacity represented by one of our banks so we can put it on longer maturities rather than have it expire in 2012,” Anders said.

The city’s fiscal year will end on June 30. Kostik said there may be additional new-money borrowing this month, along with more new money in July or August once fiscal 2012 begins.

Officials are reviewing submissions from financial advisers, pricing consultants, and swap advisers in response to a request for proposals sent out in mid-April.

New York City received a total of 21 proposals. Kostik and Anders declined to specify when the city might announce its selections.

New York City and its issuers expect to sell $29 billion of new-money bonds during the next four years.

Officials are also working on a $500 million New York City Municipal Water Finance Authority refunding that will price June 15, following a one-day retail order period. Morgan Keegan & Co. is the book-runner on the transaction. Barclays Capital, Jefferies & Co., M.R. Beal & Co., and Ramirez & Co. are co-senior managers.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER