$413M Bond Sale Will Fund New Projects and Save an Estimated $11.5M for New York City Ratepayers

President and CEO Maureen A. Coleman today announced that the New York State Environmental Facilities Corporation (EFC) has successfully closed a $413 million bond sale that will provide financial assistance for New York City and save ratepayers $11.5 million over the next 10 years. The bonds will provide capital 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.

“This successful closing will ensure resources for New York City to help manage their drinking and clean water infrastructure needs and will refinance debt to help save costs for the city’s ratepayers,” President Coleman said. “By issuing refunding bonds, EFC is being proactive in its administration of one of the most efficient and effective State Revolving Funds in the nation. Bond refundings generate additional capital to maximize the state and federal allocations for water quality infrastructure, which means more dollars are available for low-interest financings for water projects. EFC is pleased to provide this service to our municipal partners, including New York City, to help achieve savings on debt service. EFC has executed three bond refundings since June 2021, which are projected to collectively save ratepayers across the state more than $136 million over the next 20 years.”

This transaction was approved by EFC’s Board of Directors at its February meeting and closed on April 21. 

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 Bank of America Securities, Inc. as senior manager, and Loop Capital Markets as co-senior manager. EFC’s financial advisors for the transaction were Hilltop Securities, TKG & Associates and Rockfleet Financial Services, Inc. EFC’s co-bond counsel on the transaction was Hawkins Delafield & Wood LLP and Pearlman & Miranda, LLC.