The New York City Transitional Finance Authority sold $100 million of variable-rate bonds directly to Wells Fargo NA, the issuer said last week. Last month, the TFA announced that it would market the Series 2010G-6 bonds as variable rate but did not specify the terms. The bonds will initially bear interest in an indexed mode that does not require liquidity support.
Sidley Austin LLP was bond counsel.
The debt was sold as 24-year term bonds, according to the preliminary official statement.
The deal is not the TFA’s first direct placement. In February, it directly sold $375 million of taxable Build America Bonds and traditional taxable bonds to the New York State lottery, and last month it directly sold another $78 million of BABs to the lottery.