General Revenue Junior Indebtedness Obligations
|A2 (Stable) uninsured||A- (Stable) uninsured|
|A2 insured||AA insured|
|Series 2013A||$ 1,600,000,000||Assured Guaranty (1)|
|Series 2013B||See TIFIA Loan Description (2)||N/A|
|Series 2016A||$ 850,000,000||N/A|
PURPOSE: The Series 2013A Junior Indebtedness Obligations (JIOs) were issued on December 18, 2013 with a single maturity of May 1, 2019 (i) to fund a portion of the cost of the Authority's New NY Bridge Project, a twin span replacement of the Tappan Zee Bridge, (ii) to provide funds to refinance the principal and accrued interest on the Authority's General Revenue Bond Anticipation Notes, Series 2013B, (iii) to pay capitalized interest on the Series 2013A JIOs through December 31, 2017, and (iv) to pay the Costs of Issuance of the Series 2013A JIOs. The Series 2013B JIOs were issued on December 19, 2013 to secure the TIFIA loan (see footnote 2 below) as a Junior Indebtedness Obligation.
The 2016A JIOs were issued on May 12, 2016 (i) to fund a portion of the cost of the Authority's New NY Bridge Project twin-span replacement of the Tappan Zee Bridge, (ii) to pay capitalized interest on the Series 2016A Junior Indebtedness Obligations, (iii) to make a deposit to the Series 2016A Subaccount of the Junior Indebtedness Debt Service Reserve Account, and (iv) to pay the Costs of Issuance of the Series 2016A Junior Indebtedness Obligations.
SECURITY: The JIOs are special obligations of the Authority. All JIOs issued under the Junior Indebtedness Resolution are secured as to the payment of principal, premium, if any, and interest thereon by a pledge of the Revenues and certain funds and accounts established under the Junior Indebtedness Resolution, subordinate to the pledge securing Senior Bonds previously issued, outstanding and to be issued under the Authority's General Revenue Bond Resolution ("Senior Resolution").
DEBT SERVICE COVERAGE: Calendar Year 2017 net revenues of $459.7 million provided 1.65 times coverage of combined annual debt requirements of $278.3 million.
(1) Assured Guaranty Municipal Corp. insures the following outstanding maturities:
Maturity Date: May 1, 2019
(2) TIFIA Loan (Series 2013B JIO): Pursuant to the TIFIA Loan Agreement entered into between the US Department of Transportation, acting by and through the Federal Highway Administration, and the Authority, the Series 2013B Junior Indebtedness Obligation was issued in connection with a portion of the financing of the New NY Bridge Project. The Series 2013B Junior Indebtedness Obligation secured the loan from the Federal Highway Administration in an aggregate principal amount not to exceed $1.6 billion (and in the same aggregate principal amount of the Series 2013A Junior Indebtedness Obligations). The proceeds of the TIFIA Loan are anticipated to be disbursed in a single draw in March, 2019 (no later than one year after substantial completion of the twin-spans of the New NY Bridge Project); provided that total disbursements under the TIFIA Loan cannot exceed 33% of all such eligible costs of the New NY Bridge Project. The Authority, as authorized in the First Supplemental Junior Indebtedness Resolution, has reserved the right to pay, but is not obligated to pay, all or a portion of the principal of the Series 2013A Junior Indebtedness Obligations which mature on May 1, 2019 from the proceeds of the TIFIA Loan. The Authority issued the Series 2013B Junior Indebtedness Obligation to secure its payment obligations under the TIFIA Loan Agreement and, accordingly, the TIFIA Loan is on a parity with the other Junior Indebtedness Obligations issued or to be issued by the Authority under the Junior Indebtedness Resolution, (except with respect to any subaccount of the Debt Service Reserve Account specifically established for a particular Series of Junior Indebtedness Obligations). Pursuant to the TIFIA Loan Agreement and the Junior Indebtedness Resolution, no proceeds of Senior Bonds may be used to pay Project Costs of the New NY Bridge Project prior to its completion.