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FOR RELEASE:
Immediately
March 22, 2011
March 22, 2011
Comptroller DiNapoli Announces Results of General Obligation Bond Sale: $829,100,000 Awarded
Series 2011A Tax-Exempt and 2011B Taxable New Money Bonds: $500,050,000 Awarded
Series 2011C Tax-Exempt Refunding Bonds and 2011D Taxable Refunding Bonds: $329,050,000 Awarded
State Comptroller Thomas P. DiNapoli awarded four series of New York State General Obligation Bonds, totaling $829,100,000, through a competitive sale. Specifically, the sales were $478,185,000 of Series 2011A Tax-Exempt Bonds, $21,865,000 of Series 2011B Taxable Bonds, $231,125,000 of Series 2011C Tax-Exempt Refunding Bonds and $97,925,000 of Series 2011D Taxable Refunding Bonds. The bonds are scheduled to be delivered on March 30, 2011.
“The market reacted favorably to this bond sale,” DiNapoli said. “There was strong demand for our bonds which was reflected in the number of bidders and the pricing levels bid.”
The winning bids were as follows:
- Series 2011A Tax-Exempt Bonds to Wells Fargo Bank, National Association with a true interest cost bid of 4.250042 percent;
- Series 2011B Taxable Bonds to Wells Fargo Bank, National Association, with a true interest cost bid of 3.370060 percent;
- Series 2011C Tax-Exempt Refunding Bonds to Banc of America Merrill Lynch, with a true interest cost bid of 1.289124; and
- 2011D Taxable Refunding Bonds to Wells Fargo Bank, National Association, with a true interest cost bid of 2.408746.
The net proceeds of the Series 2011A Tax-Exempt Bonds will finance capital expenditures made or anticipated to be made, during the prior, current or subsequent state fiscal years for projects associated with purposes authorized by the Accelerated Capacity and Transportation Improvements of the Nineties, Clean Water/Clean Air, Environmental Quality 1972, Environmental Quality 1986, Pure Water, Rebuild New York Through Transportation Infrastructure Renewal, and Rebuild and Renew New York Transportation bond acts. The Series 2011A Tax-Exempt Bonds will mature over 30 years.
The net proceeds of the Series 2011B Taxable Bonds will finance capital expenditures made or anticipated to be made, during the prior, current or subsequent state fiscal years for the Clean Water/Clean Air, Environmental Quality 1972, and Rebuild and Renew New York Transportation bond acts. The Series 2011B Taxable Bonds will mature over 10 years.
The net proceeds of the Series 2011C Tax-Exempt Refunding Bonds and Series 2011D Taxable Refunding Bonds will be used to refund $339.1 million or approximately 10 percent of the outstanding New York State General Obligation Bond portfolio. The refunding portion of the transaction will result in lower debt service costs to the state. As a result of the refunding, New York’s taxpayers will save approximately $32.8 million on a cash flow basis and $29 million on a net present value basis over the life of the bonds.
A summary of bids received for each series follows:
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Internet: www.osc.state.ny.us
E-Mail: press@osc.state.ny.us
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