State of New York Mortgage Agency (SONYMA) Authorizes Issuance of Refunding Bonds
NEW YORK, NY (10/06/2011)(readMedia)-- The Board of the State of New York Mortgage Agency, today authorized the issuance of economic refunding bonds (the "Refunding Bonds") to redeem at par certain of its outstanding bonds. In the current low-interest rate environment, this issuance provides an opportunity to refund higher-interest bonds and replace them with lower-cost debt, generating substantial savings for SONYMA. The proceeds will be used to support SONYMA's affordable homeownership programs. Proceeds will also be used to refinance certain outstanding variable rate bonds into fixed rate bonds, which will create further savings.
The bonds that are being considered for refunding are outstanding Homeowner Mortgage Revenue Bonds, Series 67, 69, 70, 71, 72, 73A, 78A, 79, 80, 82, 83, 87, 96 through 102, and 154.
The refunding may result in the redemption of a portion or all of the bonds to be refunded on one or more dates beginning on or about December 1st, 2011.
Should SONYMA decide to issue the Refunding Bonds in the expected approximate amount of $232 million, the issuance and the timing are subject to certain conditions, including but not limited to relevant financial considerations, and to the approval by the New York State Comptroller and by the Public Authorities Control Board of the State of New York.
The Refunding Bonds are expected to be underwritten by a syndicate led by Citi.
The State of New York Mortgage Agency was created in 1970 to increase the affordability of homeownership for low- to moderate-income residents of New York State. The Agency is a corporate governmental agency constituting a public benefit corporation, created under the Public Authorities Law of the State of New York. SONYMA is located within New York State Homes and Community Renewal (NYSHCR), which consists of all the State's major housing and community renewal agencies, including the Affordable Housing Corporation, the Division of Housing and Community Renewal, Housing Finance Agency, and the Housing Trust Fund Corporation, among others.
This press release is intended as general information regarding SONYMA's issuance of Refunding Bonds and should not be considered an offering of securities. Investors should consider the risks carefully before investing in the Refunding Bonds. These risks and other information will be contained in the Official Statement that will be prepared by SONYMA in connection with the sale of the Refunding Bonds.