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New York City Transitional Finance Authority

Municipal

$1,051,430,000

Future Tax Secured Sub, Fiscal 2022 Series A

August 4, 2021

SENIOR MANAGER

Image by Sam Mgrdichian

The financing was 1.6x oversubscribed, with subscription levels ranging from between 1.0x-2.4x across all maturities

Proceeds of the issue were used to redeem prior Future Tax Secured Bonds (as identified in the OS).


The transaction consists of two series of bonds. The Subseries A-1 Bonds are tax-exempt bonds that were sold on a negotiated basis and structured as serial bonds that mature in 2022, 2023, and 2025-2038. Bifurcated maturities were utilized in the 2022, 2024, 2025, 2026 and 2038 maturities. The Subseries A-2 Bonds are federally taxable bonds that were sold on a competitive basis. These bonds were structured as serial bonds maturing in 2024 & 2025.


SWS was responsible for structuring both the tax-exempt negotiated subseries as well as the taxable competitive series and worked with the Authority and its FAs to optimize the structure in its entirety.


The week of pricing had a quiet yet steady market tone, with MMD remaining relatively unchanged across the curve. The calendar for the week of pricing has about $4.0bn in tax-exempt issuance and $6.0bn in taxable issuance. In the backdrop, looming concerns of the coronavirus Delta Variant and rising inflation continued to threaten the economy and overall steady market tone. The week of pricing was the 22nd consecutive week of positive inflows into municipal bond funds.


During the two-day retail order period, all maturities were offered except for 2036 & 2037. Investors placed a total of $408.9mm retail orders. Serial bonds were between .08x-1.11x oversubscribed across the curve, with an overall subscription level of 0.44x after the second day of the retail order period.


The Authority received $1.1bn in institutional priority orders, which combined with retail orders brought the overall book to $1.5bn in orders from 60 unique investors (excluding stock). Overall, the financing was 1.6x oversubscribed, with subscription levels ranging from between 1.0x-2.4x across all maturities.


Given the market tone and a 1 bp bump in MMD between 2023 and 2026, the Siebert tightened yields by 1 bp on the 2023, 2025, 2026 and 2033 maturities.

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