The New York State Urban Development Corp has chosen four underwriting teams to refund a variety of corporation issues, including the corporation's general-purpose debt and bonds sold to finance private development.
Joseph A. Branca, the corporation's chief executive officer, said the refundings could occur over the next four months. "Some of the refundings are in the money, and some are not," Branca said. "If I get a window lined up, we can go to market."
The corporation is chaired by Vincent Tese, the state's director of economic development.
On Sept. 21, the corporation's board approved the underwriting selections. The corporation now needs approval from the state's Public Authorities Control Board to give the transactions the go-ahead and establish an issuance date.
Branca said he may seek board approval in November.
The corporation has chosen Bear, Stearns & Co.; Kidder, Peabody & Co.; and Merrill Lynch & Co. as senior managers for its largest potential deal, a refunding of $700 million in its general purpose bonds. Wall Street sources say all three firms will get credit as bookrunners for the deal, but details were not available by press time.
Unlike many other corporation issues, these securities are supported by the corporation's own revenues and not those from the state.
M.R. Beal & Co. and Prudential Securities Inc. will serve as senior managers on a $45 million corporation refunding issue. The original bonds, supported by state revenues, helped finance the construction of a convention center in upstate New York.
The corporation also selected Donaldson, Lufkin & Jenrette Securities Corp. and Morgan Stanley & Co., as senior managers for a refunding of state debt used to build research facilities for several private colleges in New York State. Wall Street sources say Donaldson Lufkin will run the books on the issue. The deal's size has not been set.
Samuel A. Ramirez & Co. and Smith Barney Inc. will underwrite another corporation refunding issue, involving state-backed bonds sold for the Rensselaer Polytechnic Institute, of about $45 million.
The corporation mailed request for proposals late last year. After receiving 36 responses, it narrowed the field and interviewed 20 firms during the final week of August, Branca said. New York State often uses the Urban Development Corp. to sell its so-called appropriated debt, which are bonds that can be sold without voter approval.
