New York State Authority Sells $1.22 Billion in Bonds for Transportation Programs

By Paulo Trevisani

The Dormitory Authority of the State of New York sold $1.22 billion of municipal bonds to cover the costs of transportation programs and other projects.

The authority issued three groups of tax-exempt Series 2024A bonds maturing between 2026 and 2056, all with a 5% interest rate. The 10-year bonds carry a 2.98% yield, according to a statement published Thursday on MuniOs.

DASNY initially planned to raise nearly $1.29 billion with the sale.

The proceeds are meant to finance, refinance or reimburse the costs of certain capital projects, including work done as part of the Consolidated Local Street and Highway Improvement Program and projects for the Metropolitan Transportation Authority.

The bonds were sold in competitive bidding on Wednesday. Morgan Stanley bought the first tranche of bonds, which mature between 2026 and 2041. J.P. Morgan Securities bought the second group, maturing between 2042 and 2050, and BofA Securities bought the third tranche, maturing between 2051 and 2056.

The bonds are backed by money collected from the state's sales tax. The state estimated it would collect about $19.07 billion in sales tax receipts during the 2024-2025 fiscal year.

Interest is payable on each March 15 and Sept. 15, starting in March 2025.

Moody's Ratings has assigned the bonds an Aa1 rating and Kroll Bond Rating Agency rated them AAA.

Write to Paulo Trevisani at [e-mail]

(END) Dow Jones Newswires

07-12-24 1335ET