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NY Dormitory Authority Issues $965 Mln in Bonds

By Munichain News Desk

The Dormitory Authority of the State of New York (DASNY) sold $965.4 million in bonds to finance loans to school districts across the Empire State.

The authority issued the bonds in four series. The Series 2024A bonds, consisting of $793 million, mature between 2025 and 2052, yielding between 2.99% and 4.29%. The Series 2024B bonds, consisting of $46.1 million, the Series 2024C bonds, consisting of $59.8 million, and the Series 2024D bonds, consisting of $66.6 million, each mature between 2025 and 2039, and yield between 3.02% and 3.49%. 

The Series 2024A and Series 2024B bonds received a rating of AA- from Fitch Ratings and Aa3 from Moody’s Investors Service. The Series 2024C bonds received a rating of AA- from Fitch and Aa2 from Moody’s. The Series 2024D bonds received a rating of AA- from Fitch and AA from S&P Global Ratings.

DASNY will loan the proceeds to school districts throughout New York to fund capital improvements. The loan program is backed by annual appropriations of state aid to individual school districts. The largest borrower in the program is the public school district of Schenectady, a city in upstate New York.

Fitch analysts noted that while New York has historically provided strong aid to all school districts participating in the program, the aid sometimes comes after loan payments are due to DASNY. However, they added that management by DASNY is an overall “credit strength” that mitigates concerns of late payments.

The bonds are special obligations of DASNY, payable by general obligation bond payments from borrowing school districts.

Raymond James & Associates, LLC served as lead underwriter on the issuance.

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