Comptroller DiNapoli Announces New York Local Government Assistance Corporation Bonds Awarded
Series 2007A Tax-Exempt New York Local Government Assistance
Corporation Refunding Bonds (Senior Lien): $387,320,000 Awarded
State Comptroller Thomas P. DiNapoli, today announced the August 15, 2007 award, through a competitive sale, of $387,320,000 of New York Local Government Assistance Corporation Series 2007A Refunding Bonds (Senior Lien) to Banc of America Securities LLC. The true interest cost of the winning bid was 4.076571 percent.
The other bids were submitted by: UBS Securities LLC; Merrill Lynch & Co.; Morgan Stanley & Co. Inc.; J.P. Morgan Securities Inc.; Citigroup Global Markets Inc.; Goldman, Sachs & Co.; and Lehman Brothers, Inc. at true interest costs of 4.084176 percent, 4.087744 percent, 4.089933 percent, 4.090150 percent, 4.119219 percent, 4.144454 percent and 4.168683 percent, respectively.
All bids were received via BiDCOMP competitive bidding system. The net proceeds of the Series 2007A Refunding Bonds (Senior Lien) will be used to call and redeem $404,030,000 in previously issued senior lien bonds. The refunding will result in net cash flow savings to the Corporation and the State over the life of the bonds of approximately $26.1 million with a net present value of approximately $19.5 million. The bonds will mature on each April 1 beginning on April 1, 2010 and ending on April 1, 2019. The bonds are expected to be delivered on August 22, 2007.
The 2007A Refunding Bonds (Senior Lien) will be general obligations of the Corporation, payable from payments received by the Corporation from the State. The State’s payments to the Corporation are derived from a portion of the revenues collected from certain sales and compensating use taxes imposed by the State on a statewide basis.
Under the Public Authorities Law, the New York Local Government Assistance Corporation is required to enter into an agreement with the New York State Comptroller for the sale of all Corporation bonds and notes. Comptroller DiNapoli serves as the Corporation’s “exclusive agent” for these sales.
Additional information about the New York Local Government Assistance Corporation can be found at: