New York's Metropolitan Transportation Committee intends to remarket $148 million of Triborough Bridge and Tunnel Authority subordinate revenue variable rate bonds in October, an official told the MTA board's finance committee on Monday. The MTA is effecting a mandatory tender with the transaction, which book-running remarketing agent JPMorgan Securities will lead. The deal will involve $95.3 million of Series A and B bonds, and $52.6 million of Series C and D bonds, both sold in 2000. Co-remarketing agents are Citigroup Global Markets and the minority business enterprise joint venture team of Rice Financial Products and Bank of New York Mellon. Nixon Peabody LLP and Public Financial Management Inc. are bond counsel and financial advisor, respectively. Deputy finance director Olga Chernat also told the committee that the MTA will renew direct-pay letters of credit with Landesbank Hessen-Girozentrale by three years for Series 2005D-2 bonds and State Street Bank, the latter set to expire on Sept. 30. The authority is one of the largest municipal issuers, with $34 billion of debt. On Sept. 10, the MTA remarketed $227 million of transportation revenue variable rate refunding bonds in three series. Of special note, according to Chernat, was the $84.5 million of subseries 2012G-1. Morgan Stanley submitted the winning bid. "Morgan Stanley submitted a very aggressive spread, at 0.3%. That gave us the ability to sell the bonds to retail investors," she said.
Finance officials reported that debt-service costs for August were $207.1 million, which was $4.1 million, or 1.9% favorable against the midyear forecast due to rates lower than projected and the timing of interest payments. The committee also approved the addition of three law firms to its panel of outside counsel available on collection matters relating to toll- and non-toll collection services. The firms are Peter C. Merani PC, Strasser & Associates and Leopold, Gross & Sommers PC. Earlier in the day, board members continued to discuss how changing demographic trends affect ridership and funding. Long Island Rail Road president Patrick Nowakowski cited the planned move by the New York Islanders hockey team next season from Uniondale, N.Y., to the Barclays Center in Brooklyn, which sits above the Atlantic-Barclays subway and LIRR stations. Nine subway lines pass through this station.
Nowakowski said LIRR would study ridership numbers from Friday night's Islanders exhibition game. "This is for mutual interest, not just our interest," said board member Jonathan Ballan. "We should be doing this for all the sports teams." The MTA is expected to release its capital plan for 2015-2019 to the board on Wednesday.
