The Bank of New York Selected as Trustee for $1.5 Billion Electric System Subordinated Revenue Bonds

Strategic Insights -

The Bank of New York has been chosen as the trustee, tender agent, registrar, and paying agent for a massive $1.5 billion bond issue by the Long Island Power Authority (LIPA). The securities were issued to fund various projects related to LIPA's acquisition of the Long Island Lighting Company. The bonds have been divided into six series, each worth $250 million, with interest rates that float daily, weekly, or monthly, depending on the series.

Key Takeaways:

  • The Bank of New York will provide comprehensive services, including trustee services, tender agent services, and tracking of interest rate movements.
  • The bond issue consists of six series, each worth $250 million, totaling $1.5 billion.
  • The Bank of New York specializes in providing non-routine services for high-profile transactions, which makes it an ideal choice for LIPA.
  • Mark F. Ferraris, senior vice president and head of Corporate Trust Services at The Bank of New York, said, "We are pleased to have been selected by LIPA for such an important financing."
  • The Bank of New York is the oldest bank operating under its original name, founded in 1784 by Alexander Hamilton.
  • The bank has total assets of $59 billion as of March 31, 1998.
  • The bank provides a range of financial services, including securities servicing, corporate banking, asset-based lending, and trust and investment management.

Statistics:

  • $1,500,000,000: Total value of the Electric System Subordinated Revenue Bonds issued by LIPA.
  • 6: Number of series of bonds issued.
  • $250,000,000: Value of each series of bonds.
  • $59 billion: Total assets of The Bank of New York as of March 31, 1998.

Sources:

  • "The Bank of New York Selected as Trustee for $1.5 Billion Electric System Subordinated Revenue Bonds." PRNewswire, June 23, 1998.
  • The Bank of New York. "About Us." [www.bankofny.com](http://www.bankofny.com).