NYC Transitional Finance Authority Sells $760 Million in Munis

The New York City Transitional Finance Authority said it sold $760 million in municipal bonds this week, the first part of a $960 million issue this month.

The authority, created in 1997 so the largest U.S. city could continue paying for its capital program even as it approached a state constitutional debt limit, backs the bonds with income- and sales-tax revenue. The securities have the top grade from Standard & Poor’s and Fitch Ratings, the authority said in a statement on its website.

The $760 million issue on April 8 included $650 million in tax-exempt bonds and $110 million of taxable securities. Yields on the tax-exempt bonds ranged from 0.34 percent for those that mature in two years to 4.2 percent for bonds due in 2041.

The authority will sell an additional $200 million on April 28, according to the statement. In the fiscal year that ends June 30, the TFA has issued $2.9 billion in tax-secured bonds, according to its website.

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