The New York City Municipal Water Finance Authority issued $1.36 billion in bonds to finance improvements to the city’s water system.
The bonds mature between 2028 and 2054, yielding between 2.51% and 3.89%. They received a rating of AA+ from S&P Global Ratings, Aa1 from Moody’s Investors Service, and AA+ from Fitch Ratings.
“The long-term Aa1 rating reflects a claim on revenue generated by an essential service utility in a vast and diverse metropolitan area, the healthy liquidity of the water and sewer system, and strong rate management by the New York City Water Board,” Moody’s analysts wrote.
The deal was upsized by more than $600 million. Last week, the New York City Comptroller’s Office announced that it would sell $758 million in bonds—which became $1.36 billion.
The New York City Water and Sewer system is one of the largest in the United States, serving more than nine million people across 300 square miles. The Municipal Finance Water Authority funds its capital expenditures. The bonds are special obligations of the authority, secured by a lien on its revenue. Following the issuance, the authority has more than $33 billion in bonds outstanding.
Siebert Williams Shank & Co, LLC and Barclays Capital, Inc served as lead underwriters on the issuance. Frasca & Associates, LLC acted as financial advisor.