New York City GO Fiscal 2014 C – F

City of New York
$892,595,000
General Obligation Bonds
Fiscal 2014 Tax-exempt
Subseries D-1, Series E, Series F & Fiscal 2003 Subseries C-A (Reoffering)

New York City up sizes GO bond transaction by $420 million.

The $892.5 million issuance in September 2014 was the firm’s third senior-managed general obligation bond transaction for New York City. The deal incorporated four separate series of bonds and the proceeds were used for new money projects, a refunding and a reoffering.

This sale benefitted from a bullish investor sentiment following the FOMC’s announcement that the Fed would continue its quantitative easing program. To increase the universe of buyers, Siebert Brandford Shank held a two-day retail order period that generated $357 million in orders and oversubscriptions in several maturities. With the strong book of orders and improving market, the pricing scales were bumped 5 basis points in several maturities which led to an upsizing of the financing by $420 million for the refunding component. At the end of the order period, there were $940 million in priority orders, which together with the $357 million in retail orders represented an oversubscription of 1.45x. The investor participation was diverse, featuring orders from a broad array of investors, including insurance companies, mutual funds and arbitrage accounts.

While the municipal market fared well that week, the NYC transaction was in the spotlight, receiving strong press coverage in the municipal market. The Bond Buyer devoted an entire article to the transaction titled, “NYC Prices Attractively Amid Stronger Market,” on September 23rd, and Thomson Reuters named this transaction the “deal of the week” in its weekly municipal brief.