New York, New York, issued $1.28 billion in bonds to finance capital improvements and refund previously sold securities.
The city sold the bonds in three series. The 2024 Series D bonds, consisting of $1.1 billion, mature between 2026 and 2054, yielding between 2.78% and 4.25%. The 2024 Series E bonds, consisting of $164.9 million, mature between 2025 and 2035, yielding between 2.78% and 3.14%. The 2024 Series F bonds, consisting of $15.2 million, mature between 2024 and 2035, yielding between 2.78% and 3.3%.
The securities received a rating of Aa2 from Moody’s Investors Service, AA from S&P Global Ratings, AA from Fitch Ratings, and AA+ from Kroll Bond Rating Agency.
“The Aa2 issuer rating reflects New York City’s post-pandemic economic recovery, including record-high private employment, positive trends in assessed property values despite commercial real estate challenges, steady tax revenue growth, and strong tourism metrics,” Moody’s analysts wrote.
The issuance comes amid an uptick in asylum seekers sheltering in New York. The “migrant crisis” has caused budget gaps in the current and upcoming fiscal years, according to Moody’s.
Proceeds from the Series D bonds will fund “capital purposes,” according to the official statement accompanying the sale of the bonds. The city will use proceeds from the Series E and F bonds to redeem securities it sold in 2021.
New York also remarketed $175 million in Series 2006 bonds this week.
The Series 2024 bonds are general obligations of the city, backed by its full faith and credit and supported by property taxes.
Jefferies LLC served as lead underwriter on the issuance. Public Resources Advisory Group and Acacia Financial Group, Inc acted as financial advisors.