On December 11, 2024, Siebert Williams Shank (“SWS”) served as senior manager for the New York State Housing Finance Agency’s (“NYSHFA” or the “Agency”) $124.7 million State Personal Income Tax (“PIT”) Bonds.

Series 2024 B-1 & B-2 – Provided funds for 2024 Mortgage Loans for three projects in Onondaga, Wayne, and Saratoga County, which included 390 units.

Series 2024 C – Provided funds for 2024 Mortgage Loans for another project in New York County, which included 433 units.

The financing represented only the Agency’s second issuance of PIT Bonds, requiring considerable coordination between the Agency, NYS Division of Budget and the rest of the financing team.

The Bonds were designated as Social based on the intended use of proceeds to provide affordable housing with energy efficiency standards and features.

The 2024 Series B-1 and 2024 Series C bonds were structured with semi-annual maturities from December 15, 2027 (B-1 only) through December 15, 2036 and term bonds maturing on December 15, 2039, 2044, 2049, and 2054.

Both series were structured with a 5-year call at par, a unique feature in the housing sector.

The 2024 Series B-2 bonds were structured with mandatory tender dates of December 15, 2028 and December 15, 2029, with optional calls on December 15, 2026 and December 15, 2027, respectively.

All three series were structured as par bonds, creating further differentiation from the recent NYSHFA PIT transaction, other New York housing paper pricing the same and prior weeks, and a $2.2 billion NYS Sales Tax financing that priced that week.

In the week prior to pricing (week of December 2nd), new issue supply was approximately $13.4 billion, an increase from previous weeks’ deflated supply resulting from the Thanksgiving holiday and Presidential election.

SWS composed an investor presentation that was viewed by 26 different investors, who ultimately placed $194 million in orders.

After pre-marketing, SWS received 34 investor reads, which allowed SWS to maintain yields from pre-marketing despite a one basis point cut in the previous day’s final MMD from 2030 to 2054, resulting in tighter spreads for the retail order period scale for the corresponding maturities in both 2024 Series B-1 and 2024 Series C.

Similarly, following strong retail order period results, SWS received an additional five investor reads which enabled its underwriters to tighten the retail order period scale by five basis points in the June 15, 2028 maturity for both 2024 Series B-1 and 2024 Series C.

All of the bonds were offered during the retail order period, with NYSHFA reserving the right to limit the retail allotments on each maturity to 50% of the aggregate par value of each maturity at the final price.

More than $113 million in New York and national retail orders were received during the retail order period.

Given the strong retail order period and extensive investor reads, SWS was able to accelerate institutional pricing into the afternoon of the 11th.

The institutional pricing targeted the same pricing levels, with the exception of a five basis point reduction in yield for the June 15, 2028 maturities of 2024 Series B-1 and 2024 Series C bonds, given the oversubscription.

Significant institutional participation was generated from 17 different investors totaling $322 million of orders, resulting in an overall subscription level of 3.5x.