Thursday, March 11, 2010

NYC Plans $900 Million General Obligation Bond Sale

New York City plans to sell $900 million of general obligation bonds as soon as next week, including $675 million of taxable Build America Bonds, according to the city’s Office of Management and Budget, reports Bloomberg.

NYC will also sell $225 million of tax-exempt securities, a $150 million floating-rate issue and a $75 million fixed-rate portion.

According to Bloomberg, NYC’s budget for the fiscal year starting July 1 faces a gap of as much as $2 billion because of proposed reductions in state aid, New York State Comptroller Thomas DiNapoli said today. The economic recession has cost the city 162,000 jobs, a decline of 4.2 percent.

The city auctioned $217 million of general obligation Build America Bonds on Feb. 25 with debt maturing in 30 years priced to yield 5.62 percent, or 1.03 percentage points more than U.S. Treasuries with a comparable maturity.

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