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March 7, 2013

DiNapoli Announces Results of General Obligation Bond Sale: $566,560,000 Awarded

State Comptroller Thomas P. DiNapoli today awarded three series of New York State General Obligation Bonds, totaling $566,560,000, through a competitive sale. Specifically, the sales were $348,065,000 of Series 2013A Tax-Exempt Bonds, $47,810,000 of Series 2013B Taxable Bonds and $170,685,000 of Series 2013C Tax-Exempt Refunding Bonds. The bonds are scheduled to be delivered on March 19, 2013.

“These bonds, all of which have been approved by the voters, will pay for essential investments in transportation and environmental projects,” DiNapoli said. “Once again, there was significant investor interest in the state’s bonds. The combination of strong market interest and a historically low interest rate environment translated into favorable pricing for the state.”

The winning bids were as follows:

  • Series 2013A Tax-Exempt Bonds to J.P. Morgan Securities LLC with a true interest cost bid of 3.008972 percent;
  • Series 2013B Taxable Bonds to Bank of America Merrill Lynch with a true interest cost bid of 1.742655percent; and,
  • Series 2013C Tax-Exempt Refunding Bonds to Morgan Stanley & Co, LLC with a true interest cost bid of 1.554914 percent.

The state received eight bids for the $348.1 million of tax-exempt new money bonds. The net proceeds of the Series 2013A Tax-Exempt Bonds will finance projects authorized by the following bond acts: Clean Water/Clean Air, Environmental Quality 1986, Environmental Quality 1972, Pure Waters, Rebuild New York Through Transportation Infrastructure Renewal and Rebuild and Renew New York Transportation. The Series 2013A Tax-Exempt Bonds will mature over 30 years.

The State received thirteen bids for the $47.8 million of taxable new money bonds. The net proceeds of the Series 2013B Taxable Bonds will finance projects authorized by the following bond acts: Environmental Quality 1972 and Rebuild and Renew New York Transportation. The Series 2013B Taxable Bonds will mature over 10 years.

The State received eight bids for the $170.7 million of tax-exempt refunding bonds. The net proceeds of the Series 2013C Tax-Exempt Refunding Bonds will be used to refund $191 million of outstanding New York State General Obligation Bonds to reduce debt service costs to the state. Specifically, as a result of the refunding, New York’s taxpayers will save approximately $35 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 can be viewed at http://www.osc.state.ny.us/press/docs/bondsale_bidsummary2013.pdf

The Series 2013A Tax-Exempt Bonds, the Series 2013B Taxable Bonds and the Series 2013C Tax-Exempt Refunding Bonds are rated AA Standard & Poor’s Ratings Services, Aa2 byMoody’s Investors Service, Inc. and AA by Fitch, Inc.

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