| Contact: | Curt Ritter, Mayor's Press Office (212) 788-2958 |
| David Neustadt, Comptroller's Press Office (212) 669-2591 |
Mayor Rudolph W. Giuliani and Comptroller Alan G. Hevesi today
announced the results of approximately $666 million of New York City General
Obligation New Money and Refunding Bonds sold by negotiated public sale. J.P.
Morgan & Co. served as book-running senior manager with Goldman, Sachs &
Co. and Salomon Smith Barney serving as co-senior managers on the $666 million
of tax-exempt bonds.
Interest rates on the City bonds ranged from 4.50% on the 2000 maturity to 6.32%
on the 2030 maturity. Financial Guaranty Insurance Corporation insured $95 million
of the bonds.
"The strong and growing support of investors is another vote of confidence in the fiscal management and economic vitality of the City," said Mayor Giuliani.
"We're particularly happy about the continued support from retail that's demonstrated here," said City Comptroller Alan Hevesi.
Strong retail support creates a more orderly market for our bonds by spreading
out what each class of buyers has to absorb, which results in relatively lower
rates.
Orders from retail investors totaled $211 million of bonds during a two-day
retail pre-sale order period. Approximately one-third of the tax-exempt bonds
was pre-sold during the retail order period including entire maturities in the
years 2000 through 2005 and the insured maturity in 2007.
Demand from institutional investors was strong and broad based. The $405 million of priority orders from institutional investors was roughly equal to the number of bonds offered to institutional buyers net of retail pre-sale orders and retention bonds. Total orders exceeded $1 billion.
$600 million of the bonds sold will be used to finance the ongoing capital program of the City. The remaining approximately $66 million is a refunding of previously issued City debt, which resulted in present value savings of approximately $4 million.
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