State Comptroller Thomas P. DiNapoli today announced the sale of $914.3 million State of New York General Obligation Series 2019B Refunding Bonds.
This General Obligation bond issue was sold to refinance certain outstanding bonds generating $112.4 million in debt service savings to the state on a net present value basis. The newly issued bonds refinance outstanding General Obligation debt issued for transportation, environmental and other purposes.
“Thanks to strong investor interest in our bonds and a low-interest rate environment, taxpayers have received significant savings from this refunding,” DiNapoli said. “Working closely with the Office of the Attorney General and the State Division of the Budget, this State GO bond issue was successfully completed.”
Through a competitive sale, the bonds were awarded to J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC. Specifically, the sales were for $211.4 million of bonds maturing in 2020 through 2024 (Bidding Group 1), $316.7 million of bonds maturing in 2025 through 2029 (Bidding Group 2) and $386.2 million of bonds maturing in 2030 through 2041 (Bidding Group 3). The state and the winning firms closed on the sale of the bonds today (October 30, 2019).
The winning bids were as follows:
- Bidding Group 1 to J.P. Morgan Securities LLC with a true interest cost bid of 1.950864 percent;
- Bidding Group 2 to J.P. Morgan Securities LLC with a true interest cost bid of 2.412717 percent; and
- Bidding Group 3 to Morgan Stanley & Co. LLC with a true interest cost bid of 3.034202 percent.
A summary of bids received for the Series 2019B Taxable Bonds can be viewed here: https://osc.state.ny.us/sites/default/files/press/documents/pdf/2019-11/bond-sale-summary-series-2019b.pdf.
The Series 2019B Taxable Bonds are rated AA+ by S&P Global Ratings, Aa1 by Moody’s Investors Service Inc. and AA+ by Fitch Ratings, Inc.
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