New York State Office of State Comptroller

03/08/2018 | Press release | Distributed by Public on 03/08/2018 17:32

DiNapoli Announces Results of General Obligation Bond Sale, March 8, 2018

State Comptroller Thomas P. DiNapoli today awarded three series of New York State General Obligation Bonds totaling $214,035,000 through a competitive sale. Specifically, the sales were $166,155,000 of Series 2018A Tax-Exempt Bonds, $36,685,000 of Series 2018B Taxable Bonds and $11,235,000 of Series 2018C Tax-Exempt Refunding Bonds.

The refunding will result in lower debt service payments, saving New York taxpayers approximately $4.3 million on a cash flow basis and $3.1 million on a net present value basis over the life of the bonds. The bonds are scheduled to be delivered on March 15, 2018.

The winning bids were as follows:

  • Series 2018A Tax-Exempt Bonds to Wells Fargo Bank, National Association with a true interest cost bid of 2.103999 percent;
  • Series 2018B Taxable Bonds to Piper Jaffray & Company with a true interest cost bid of 3.051441 percent; and
  • Series 2018C Tax-Exempt Refunding Bonds to UBS Financial Services Inc. with a true interest cost bid of 2.057387 percent.

The state received ten bids for the $166.1 million of tax-exempt bonds. The net proceeds of the Series 2018A Tax-Exempt Bonds will finance projects authorized by the following bond acts: Environmental Quality (1972), Environmental Quality (1986), Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005) and Smart Schools (2014) and will refund $63.2 million of certain outstanding General Obligation bonds. The Series 2018A Tax-Exempt Bonds will mature over 14 years.

The state received twelve bids for the $36.7 million of taxable new money bonds. The net proceeds of the Series 2018B Taxable Bonds will finance projects authorized by the following bond acts: Environmental Quality (1972), Environmental Quality (1986), Clean Water/Clean Air (1996), Rebuild and Renew New York Transportation (2005) and Smart Schools (2014). The Series 2018B Taxable Bonds will mature over 10 years.

The state received ten bids for the $11.2 million of tax-exempt refunding bonds. The net proceeds of the Series 2018C Tax-Exempt Refunding Bonds will be used to refund $12.5 million of outstanding New York State General Obligation Bonds. The Series 2018C Tax-Exempt Refunding Bonds will mature over 9 years.

A summary of bids received for each series can be viewed at General Obligation Bond Sale.

The Series 2018A Tax-Exempt Bonds, the Series 2018B Taxable Bonds and the Series 2018C Tax-Exempt Refunding Bonds are rated AA+ by Standard & Poor's Global Ratings, Aa1 by Moody's Investors Service Inc. and AA+ by Fitch Inc.