NYS Office of the Comptroller DiNapoli: Great Demand For NYS General Obligation Bonds Allows State to Reduce Costs to Taxpayers

 

$572,715,000 Awarded: Series 2023ABCD General Obligation Bonds

State Comptroller Thomas P. DiNapoli yesterday awarded through negotiated sale $572,715,000 of New York State General Obligation (GO) Bonds. After a one-day retail and institutional order period, the State received total orders of over $1.6 billion or 2.8 times the amount of bonds offered, which allowed the State to reduce yields in many maturities. Ultimately, retail orders supported over 55 percent of the total bond sale, of which 85 percent was from New York retail buyers. The true interest cost of the GO Bonds was 3.99 percent.

“I am very pleased with the sale results, which demonstrate robust demand from investors large and small for New York’s General Obligation bonds,” said DiNapoli. “This buoyant demand allowed the state to reduce yields offered, and hence reduce costs for taxpayers.”

The GO Bonds consist of:

 - $216,035,000 of Series 2023A Tax-Exempt Bonds, which will finance projects authorized by the following voter-approved bond acts: Environmental Quality (1972), Clean Water/Clean Air (1996), Pure Waters (1965), Rebuild and Renew New York Transportation (2005), and Smart Schools (2014). The Series 2023A Tax-Exempt Bonds will mature over eighteen years.

- $242,075,000 of Series 2023B Tax-Exempt Bonds, which will finance projects authorized by the voter-approved Rebuild and Renew New York Transportation (2005) bond act. The Series 2023B Tax-Exempt Bonds will mature over eighteen years.

- $104,445,000 of Series 2023C Tax-Exempt Refunding Bonds, which will facilitate the tender, purchase and refunding of certain outstanding Series 2013C Tax Exempt Refunding Bonds and Series 2021B Taxable GO Bonds. The Series 2023C Tax-Exempt Refunding Bonds will mature over fourteen years. Furthermore, the refunding will save taxpayers over $8.5 million on a present value basis, or 6.3 percent of the par amount of bonds refunded. and

- $10,160,000 of Series 2023D Taxable Bonds, which will finance projects authorized by the voter-approved Rebuild and Renew New York Transportation (2005) bond act. The Series 2023D Taxable Bonds will mature over one year.

BofA Securities, Inc. was the Senior Book-Running Manager along with Ramirez & Co., Inc. as Co-Senior Manager, to sell the bonds on behalf of the State. Co-Managers included Loop Capital Markets, RBC Capital Markets and Seibert Williams Shank & Co.. In addition, BofA Securities, Inc. acted as Lead Dealer Manager, along with Loop Capital Markets as Co-Dealer Manager, to assist the State with an Invitation to Tender certain outstanding GO Bonds to be refunded.

The bonds are scheduled to be delivered on Oct. 11, 2023.