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The City of New York



General Obligation Bonds Fiscal 2023 Series F, G & 1

May 31, 2023


Image by Sam Mgrdichian

Siebert placed the largest priority taxable order of $132.6 million, for the entirety of the 2024 taxable series

In May 2023, Siebert served as Joint-Dealer Manager on the City of New York’s first tender offer and as Joint-Senior Manager for the follow-on refunding and remarketing transaction. 

Quantitative Analysis:

This transaction incorporated a number of new structuring features on a City financing, and SWS worked closely with the City, its FAs, and the senior manager in the months prior to pricing to integrate these new approaches into a standard City refunding. Given the uncertain nature of tenders, SWS stress-tested a number of different refunding and remarketing structures assuming varying tender results throughout the yield curve. 

In 2014, the City began incorporating Multi-Modal Redemption language in its offerings, which would allow it to tender and remarket its existing debt as opposed to refunding and redeeming it, which in turn offers the City significant structuring flexibility currently unavailable under state law

SWS has presented significant analysis to the City on the long-term utilization of this feature and the FY 2021 D & E bonds were a successful first application of this analysis. SWS also identified a significant opportunity for the City to realize $5.6 million in positive arbitrage on the financing via the use of taxable make-whole call bonds as structuring bonds.


Tax-Exempt: The current refunding Fiscal 2023 Series F-1 and G bonds had serial bonds maturing between 2023-2039. The Fiscal 2023 Series 1 remarketing of the tendered taxable Fiscal 2021 Series D & E Bonds had serial bonds maturing between 2027-2036. 

Taxable: The Fiscal 2023 Series F-2 Bonds were structured as 2 serial bonds maturing in 2024 and 2025 spread to the 2-year UST.

Market Update:

The weeks leading up to pricing were largely influenced by discussion around the debt ceiling negotiation, with an agreement reached over the long Memorial Day holiday weekend

Pricing Results:

Despite MMD seeing a 0-4 basis point cut between Pre-Marketing and the ROP, spreads were kept steady across the yield curve. The transaction received approximately $2.2 billion in tax-exempt retail orders (of which $1.1 billion was usable) during the Retail Order Period and approximately $300 million of taxable Indications during the Indications of Interest. 

After a 3 basis point bump in MMD across the curve following the ROP, the tax-exempt scales were bumped by between 5-7 basis points at each offered maturity for the Institutional Order Period. On the taxable subseries, the 2024 maturity remained unchanged and the 2025 maturity was tightened by 3 basis points ahead of Guidance. At taxable Launch, the 2024 maturity spreads were held steady and the 2025 maturity was tightened by 2 basis points. At the tax-exempt Verbal Award, spreads were tightened between 7-12 bps. Overall, the transaction received $9.87 billion orders from 108 investors.

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