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New York City Issues $1.1 Billion in Bonds

By Munichain News Desk
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New York, New York, sold $1.1 billion in bonds to refund previously issued securities.

The city issued $1.08 billion in Series A bonds and $24.3 million in Series B bonds. The Series A bonds mature between 2025 and 2038, yielding between 2.98% and 3.3%. The Series B bonds mature between 2025 and 2029, yielding between 2.99% and 3.02%. All of the bonds pay interest at 5%.

The securities received a rating of AA from Fitch Ratings, AA+ from Kroll Bond Rating Agency, Aa2 from Moody’s Investors Service, and AA from S&P Global Ratings.

The rating reflects “the city’s exceptionally strong budget monitoring and control,” Fitch analysts wrote.

The city will use the issuance proceeds to achieve debt service savings by refunding bonds that it sold in 2013 and 2014. The refunding will save the city $90.5 million, spread over the next four years, according to the comptroller’s office.

The bonds were met with strong investor demand. The city said that it received more than $474 million of orders during the retail order period and almost $2.5 billion of priority orders during the institutional order period. As a result of demand, the city reduced yields.

The bonds are general obligations of the city, backed by its full faith and credit.

Wells Fargo Bank, NA, served as lead underwriter on the issuance. Public Resources Advisory Group, Inc and Frasca & Associates, LLC acted as financial advisors.


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