Bonds help the New York City Municipal Finance Water Authority (NYCMWFA) refinance multiple drinking water and wastewater infrastructure projects
President and CEO Joseph Rabito today announced that the New York State Environmental Facilities Corporation (EFC) has successfully closed a bond refunding that will help New York City ratepayers save $106 million over the next 20 years. The EFC bonds help the New York City Municipal Finance Water Authority (NYCMWFA) refinance multiple drinking water and wastewater infrastructure projects, enabling them to continue moving forward with meaningful projects that protect public health and resources in a cost-effective manner.
Joseph Rabito said, “The cost savings from this bond sale will make New York City’s water improvement projects an even better investment to benefit generations to come. The refunding of bonds by EFC brings fiscal relief to hard-pressed municipalities in the same way that refinancing a mortgage to a lower interest rate benefits homeowners. EFC is committed to actively managing its portfolio to maximize resources and help communities lower the cost burden of working towards clean water and drinking water goals."
EFC annually reviews its portfolio and leverages its high credit rating and market demand for tax-exempt bonds to help its municipal partners recognize savings on qualified existing bonds.
NYCMWFA participates in project financings through EFC and receives low-interest loans for various drinking water and wastewater infrastructure projects through the State’s Drinking Water Revolving Fund and the Clean Water Revolving Fund. Refunding bond sales deliver additional savings for EFC’s municipal partners by refinancing the original bonds that funded their projects at an even lower interest rate.
The EFC successfully closed on the $284.7 million bond issuance on June 30. Prior to the sale, EFC received AAA/AAA/Aaa bond ratings from Fitch, S&P and Moody’s ratings services. The bonds were underwritten through a syndicate led by Ramirez and Co., Inc. as the senior manager, and Goldman, Sachs & Co. as the co-senior manager. EFC’s financial advisor for the transaction was Hilltop Securities, TKG & Associates and Bright Bay Advisors. EFC’s co-bond counsel on the transaction was Hawkins Delafield & Wood LLP and Pearlman & Miranda, LLC.