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NEWS from the Office of the New York State Comptroller
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DiNapoli Announces Sale of $634 Million State of New York General Obligation Bonds

March 17, 2021

State Comptroller Thomas P. DiNapoli announced the sale of two series of New York State General Obligation Bonds totaling $634 million through competitive sale. Specifically, the sales were $102,370,000 of Series 2021A Tax-Exempt Bonds and $531,385,000 of Series 2021B Taxable Bonds.

The net proceeds from the sale will finance projects authorized by various bond acts and refund certain outstanding State of New York General Obligation bonds to reduce future debt service costs, saving New York taxpayers a total of approximately $50.2 million on a cash flow basis and $49.7 million on a net present value basis over the life of the bonds. The bonds are scheduled to be delivered on March 23, 2021.

“This voter-approved borrowing is for major transportation, education 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 low interest rate environment translated into favorable pricing and refunding savings for the state.”

The winning bids were as follows:

  • Series 2021A Tax-Exempt Bonds to Bank of America Securities, Inc. with a true interest cost bid of 1.181430 percent;
  • Series 2021B Taxable Bonds Bidding Group 1 to Bank of America Securities, Inc. with a true interest cost bid of 1.518702 percent; and
  • Series 2021B Taxable Bonds Bidding Group 2 to Morgan Stanley & Co, LLC with a true interest cost bid of 2.424844 percent.

The state received 13 bids for the $102.4 million of Series 2021A Tax-Exempt Bonds. The net proceeds of the tax-exempt bonds will finance projects authorized by the following bond acts: Environmental Quality (1986), Clean Water/Clean Air (1996), and Smart Schools (2014). The Series 2021A Tax-Exempt Bonds will mature over 14 years.

The state received a total of 20 bids for the $531.4 million of Series 2021B Taxable Bonds, 10 bids for Bidding Group 1, and 10 bids for Bidding Group 2. The net proceeds of the Series 2021B Taxable Bonds will finance projects authorized by the following bond acts: Environmental Quality (1986), Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005), and Smart Schools (2014); and will refund $430.2 million of outstanding New York State General Obligation Bonds. The Series 2021B Taxable Bonds will mature over 21 years.

Bid Summaries
https://www.osc.state.ny.us/files/press/pdf/bond-sale-summary-2021.pdf

The Series 2021A Tax-Exempt Bonds and the Series 2021B Taxable Bonds are rated AA+ by S & P Global Ratings, Aa2 by Moody’s Investors Service Inc. and AA+ by Fitch Ratings.


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