Comptroller DiNapoli Announces New York Local
Government Assistance Corporation Bonds Awarded
Series 2008A Tax-Exempt New York Local Government Assistance
Corporation Refunding Bonds (Senior Lien): $392,610,000 Awarded
State Comptroller Thomas P. DiNapoli today announced the award, through a competitive sale, of $392,610,000 of New York Local Government Assistance Corporation Series 2008A Refunding Bonds (Senior Lien) to Merrill Lynch & Co. The true interest cost of the winning bid was 3.909828 percent.
The other bids were submitted by: Banc of America Securities LLC; Citigroup Global Markets Inc.; UBS Securities LLC; Lehman Brothers, Inc.; Goldman, Sachs & Co. and Morgan Stanley & Co. Inc. at true interest costs of 3.974622 percent, 3.981676 percent, 3.990965 percent, 3.991084 percent, 4.028106 percent and 4.092810 percent, respectively.
All bids were received via BiDCOMP competitive bidding system. The net proceeds of the Series 2008A Refunding Bonds (Senior Lien) will be used to call and redeem $408,025,000 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 $29.6 million with a net present value of approximately $23.9 million. The bonds will mature on each April 1 beginning on April 1, 2009 and ending on April 1, 2021. The bonds are expected to be delivered on February 28, 2008.
The 2008A 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: http://www.osc.state.ny.us/pension/debtlgac.htm.