The Metropolitan Transportation Authority's Finance Committee on Monday gave its approval to send a bond offering to the MTA board for a final vote on Wednesday.
If approved by the full board, the sale would allow the MTA to take full advantage of the historically low interest rate market by monetizing a portion of the 99-year lease payments from the Hudson Rail Yards.
While the par amounts have yet to be finalized, the issue would be sized to yield the full amount of proceeds assumed in its 2005-2009 and 2010-2014 capital programs, which is $1.053 billion, after deducting for the usual costs of issuance.
The obligations would be issued under a trust agreement with Wells Fargo Bank as custodian.
"We see some dynamics in the current market that are really very attractive for us to this now," said Patrick McCoy, the finance director New York's Metropolitan Transportation Authority, who added the MTA was "fulfilling a commitment for the '05-'09 program and the '10-'14 programs.
He said the transaction made sense, given the current low-rate environment, the pace of the development, and the need for the money.
The full MTA board will vote on the bond plan on Wednesday afternoon.
