NYC-WTC_000195490

NYC 9/11 Public Portal Document

t, in ratings adjustment from Moody’s or Fitch. The City intends to seek rating upgrades from all three rating agencies ilize to bring the court program more in line with the City GO ratings and other State appropriation credits.

The City also plans to issue in 2001 lease appropriation bonds through the newly established Jay Street The Development Corp. (JSDC) to finance the construction of a large multi-court facility at 330 Jay Street in Brooklyn. , the ■pie size of the initial issue is expected to be approximately $275 million, with the remaining construction costs icial to be financed by JSE>C over the next four years. It is expected that the first issue, to be priced in May 2001, will sries be all variable rate debt, with both VRDBs and auction rate securities in order to achieve flexibility and the iber cheapest cost of debt. i ' e to Through,DASNY, the City plans to finance three hospital projects in early 2002 totaling approximately $600 million. The projects include a new DNA lab, ambulatory service facilities at Bellevue hospital and the phase- rate two reconstruct!oft of Kings County Hospital. Through the IDA with a similar lease appropriation structure, nds. approximately $600 million of capital funds will also be raised in early 2002 fpf the site purchase and a portion arly / of the construction costs for the new New York Stock Exchange facility. Both programs are expected to pursue ithe floating-rate exposure for a portion of the financing. Other lease appropriation debt issuance planned for the tion coming fiscal years includes $150 million for the renovation of Lincoln Cepter and $600 million for stadium sue, improvements. rs to ther The New York City Municipal Water Finance Authority

! NYW was created in 1985 to finance capital improvements to New York City’s water and sewer system. i cent i Since its first bond sale in November 1985, the Authority has sold $14.88 billion in General and Second Resolution >een J bopds, including $4.48 billion of refunding bonds. Of this aggregate bond par amount, $9,865 billion is outstanding, :led $4.04 billion was refinanced with lower cost debt, and $1.03 billion was retired with Authority revenues as it matured. In addition to this long-term debt, NYW utilizes a tax-exempt $600 million commercial paper program as a source of flexible short-term financing. n of Ws In February, NYW’s General Resolution bonds were upgraded to “Aa2” from “Aa3” by Moody’s Investors. Service, recognizing as key factors the extraordittary legal protections similar to operating company securitizations,' and a well-managed capital program. This rating upgrade brings the views of the three major rating agencies more closely in line. NYW is rated “AA” by Standard and Poor’s and “AA” by Fitch.

:ase To date in 2001, the Authority has completed three financing transactions. The First Resolution Series A and ban p issuances consisted of bond sales directly to the public. The Second Resolution Series 1 bonds were issued to ible /the New York/State Environmental Facilities Corporation (EFC) and secure a temporary direct loan from EFC to the (he Authority. The projected financing activity for the remainder of 2001 will consist of a bond sale by the Authority directly to the public for approximately $200 million and approximately $200 million in bonds issued to EFC. Additionally, the Authority expects to take advantage of potential refunding opportunities during the ling year if the interest rate environment is favorable. These financings are discussed in more detail below, ion) It to On November 20,2000, the FY2001 Series A bonds were offered for sale with a par amount of $328 million. :ing The transaction structure consisted of a single term bond with a maturity of 2033. The fixed-rate, uninsured bonds >unt sold at a 5.66 percent yield, with a TIC of 5.7 percent. This yield was only 13 basis points over the Municipal Market Data (MMD) tripIe-A scale; representing one of the best (lowest) relative yields eVer achieved by NYW. The bond sale was oversubscribed by approximately two times. Proceeds from this sale defeased a portion of ept, thb Authority/s Series One and Five commercial paper, funded the debt service reserve fund, and paid certain Y’s , costs of issuance. \ din ^e a

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