June 9, 2020 – New York State kicked off pre-marketing today for a $3.4 billion Revenue Anticipation Notes (RANs), issued via the Dormitory Authority of the State of New York (DASNY). <\/p>\n\n\n\n
The transaction is slated to price on Thursday, June 11. Citi is serving as bookrunner.<\/p>\n\n\n\n
According to sources familiar with the deal, initial price whisper for the 9-month note maturing in March 31, 2021 is set at 0.75%, representing a roughly +60 spread to 1-year MMD. <\/p>\n\n\n\n
Dealers BuyMuni spoke with were confident the deal gets done at under 1%, despite historic challenges posed by COVID-19. In the State’s most recent revenue estimates, a $13.3 billion revenue shortfall was projected for fiscal year 2021, with a mammoth $61 billion decline expected through fiscal year 2024.<\/p>\n\n\n\n
Some market commentators are of the view the financial picture is much less dire than what the state projected, noting that economies were re-opening and the stock market has now recovered to early 2020 levels.<\/p>\n\n\n\n
In April, the state legislature approved $8 billion in bond issuance to help narrow the cash deficit.<\/p>\n\n\n\n
The deficit notes are secured by the state’s personal income tax revenues, 50% of which will be pledged to bondholders.<\/p>\n\n\n\n
Contact Karen Bigelow at KBigelow@buymuni.com.<\/p>\n","protected":false},"excerpt":{"rendered":"
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