General Revenue Junior Indebtedness Obligations
|A3 uninsured||A- uninsured|
|A2 insured||AA insured|
|Series 2013A||$ 1,600,000,000||Assured Guaranty (1)|
|Series 2013B||See TIFIA Loan Description (2)||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.
SECURITY: The Series 2013A JIOs are special obligations of the Authority. All JIOs, including Series 2013A 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").
(1) Assured Guaranty Municipal Corp. insures the following outstanding maturities:
Maturity Date: May 1, 2019
(2) TIFIA Loan (Series 2013B JIO): The Authority entered into a TIFIA Loan Agreement on December 19, 2013 with the United States Department of Transportation (acting by and through the Federal Highway Administrator) for an amount up to $1.6 billion. The TIFIA Loan is secured by the Series 2013B Junior Indebtedness Obligation and bears an interest rate of 3.89% per annum. The TIFIA Loan will be on parity with all other Junior Indebtedness Obligations issued or incurred and outstanding, or to be issued or incurred by the Authority under the Junior Indebtedness Resolution. The Authority anticipates drawing on the TIFIA Loan (approximately one year after the expected completion and opening of the New NY Bridge) to pay the 2013A Junior Indebtedness Obligations due May 1, 2019. The Authority 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 when due from the proceeds of such TIFIA Loan draw.