New York City’s Transitional Finance Authority plans to sell $750 million of future tax-secured subordinated bonds through negotiated bid on Wednesday, after a one-day retail period.
According to a spokesman for city Comptroller John Liu, $500 million of the transaction will be a conversion to a fixed rate of fiscal 2003 Subseries A-1 bonds.
Additionally, the FTA intends to sell $250 million of tax-exempt refunding bonds, the spokesman said. That includes $150 million of fiscal 2012, Series C bonds and $100 million of fiscal 2012, Series B bonds.
Bank of America Merrill Lynch will be the book-running senior manager. Barclays Capital, Citi, Goldman, Sachs & Co., JPMorgan, and Morgan Stanley are co-senior managers.
Sidley Austin LLP is bond counsel while the city’s corporation counsel is also advising the authority.
Winston & Stawn LLP is advising the underwriters.
Orrick, Herrington & Sutcliffe LLP advised in the compiling of the official statement.
Public Resources Advisory Group of New York and A.C. Advisory Inc. of Chicago are financial advisors.
Standard & Poor’s and Fitch Ratings each rate the subordinate-lien bonds AAA, while Moody’s Investors Service rated them Aa1.
The TFA was created in 1997 to issue debt for parts of the city’s capital program.
On Aug. 3, the authority issued $1.05 billion of future tax-secured, fixed-rate conversion and refunding subordinate-lien bonds. The package consisted of $450 million of tax-exempt refunding bonds, $424 million of tax-exempt conversion bonds, and $172 million of taxable conversion bonds.
According to a tentative schedule New York State Comptroller Thomas DiNapoli announced last Monday, the TFA is also planning a sale of up to $775 million of tax-exempt, fixed-rate bonds in December.