President and CEO Maureen A. Coleman today announced that the New York State Environmental Facilities Corporation (EFC) has successfully closed a $301.7 million bond sale that will provide financial assistance for New York City and save local ratepayers $19.6 million over the next 10 years.
The bonds will provide financing for new wastewater and drinking water projects for the New York City Municipal Water Finance Authority (NYCMWFA) and refund certain prior bonds for existing projects. The refunding bonds will help NYCMWFA benefit from lower interest rates, resulting in reduced debt service payments. Refinancings are part of EFC’s proactive financial management to ensure projects remain cost-effective over the life of the financing.
“This financing will help New York City manage its drinking and clean water infrastructure and the refinanced debt will save costs for the city’s ratepayers,” President Coleman said. “EFC is pleased to provide this service to New York City.”
EFC has annually executed bond refundings on behalf of NYCMWFA since 1997. In the past decade alone, this proactive financial management by EFC has saved NYC ratepayers more than $415 million.
This transaction was approved by EFC’s Board of Directors at its May meeting and closed on June 29. The bonds were assigned AAA/AAA/Aaa ratings from Fitch, S&P and Moody’s ratings services. The bonds were underwritten through a syndicate led by Citigroup, Inc. as senior manager, and Ramirez and Co. as co-senior manager. EFC’s financial advisors for the transaction were PFM Financial Advisors, LLC; Rockfleet Financial Services, Inc.; and Independent Financial Advisors. EFC’s co-bond counsel on the transaction was Barclay Damon, LLP, and McGlashan Law Firm, P.C.
New projects funded by the transaction include:
- Final settling tank reconstruction at the Wards Island Water Pollution Control Plant.
- Power distribution system upgrades at the Bowery Bay Water Pollution Control Plant.
- Biological nutrient removal upgrades at the Tallman Island Water Pollution Control Plant and the Rockaway Wastewater Treatment Plant.
- An inner-harbor combined sewer overflow project that consists of reconstruction of the Gowanus Pump Station and Flushing Tunnel.
- Replacement of main sewage pumps at the Coney Island Pollution Control Plant.
- Chlorine reduction at Coney Island and North River Water Pollution Control Plants.
- Cogeneration and electrification work at the North River Water Pollution Control Plant.
- Supplemental carbon addition facilities at Bowery Bay, Wards Island, Tallman Island and Jamaica Bay Water Pollution Control Plants.
- Phase 16 of design and construction of the Croton Water Filtration Plant and associated facilities.
- Excavation and construction of Shafts 17B-1 and 18B-1 at City Tunnel No. 3.
About the Environmental Facilities Corporation (EFC) and the State Revolving Funds (SRF)
EFC is New York State's water infrastructure bank and has funded some of the largest infrastructure projects in the state. EFC administers the largest SRFs in the nation, having provided over $44 billion in low-cost financial assistance to communities for critical drinking water and sewer projects since 1990. Dollars for these financial assistance programs are generated by annual federal capitalization grants, state match, repayments from local governments, and proactive financial management by EFC. When communities repay their financings, it allows EFC to finance new projects and the funds "revolve" and grow over time.