DASNY Awards Competitive Bids on $1.2 Billion in Sales Tax Revenue Bonds to Support Transportation Projects
The Dormitory Authority of the State of New York (DASNY) awarded bids on $1.2 billion Sales Tax Revenue Bonds Series 2024A. Bond proceeds will reimburse the State for expenditures made on transportation projects statewide that are funded through New York State’s Transportation and MTA Capital Plans, as well as spending through the Consolidated Local Street and Highway Improvement (CHIPS) Program.
The bonds were awarded via competitive bid in three separate bidding groups with different maturity ranges (2026 – 2041), (2042 – 2050) and (2051-2056). Nine firms bid on the first group and, eight firms bid on both the second and third groups. Morgan Stanley won the bid on the first group (approximately $408.8 million); JP Morgan won the bid on the second group (approximately $415.9 million); and Bank of America Securities won the bid on the third group (approximately $398 million). The bonds sold with a True Interest Cost (TIC) of 4.19%. Public Resources Advisory Group and Acacia Financial Group served as Financial Advisors. Nixon Peabody and Bryant Rabbino served as Co-Bond Counsel. The bonds are expected to close on July 17. Spreads to Municipal Market Data (MMD) benchmark were +1 in 2026, +13 in 2034, +18 in 2044, +33 in 2054 and +37 in 2056.
Sales Tax Revenue Bonds are issued periodically for various capital purposes and are supported by a portion of the State’s Sales Tax revenues.
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Founded in 1944, DASNY is New York State’s capital project development authority. It finances and constructs sustainable and resilient science, health and education institutions that help New York thrive. It is one of the largest issuers of tax-exempt bonds in the nation with an outstanding bond portfolio of approximately $55.8 billion as of March 31, 2024. DASNY is also a prolific public builder with a construction pipeline of approximately 1,000 projects valued at more than $12 billion as of March 31, 2024. To learn more about DASNY, visit www.dasny.org.