A $63.7 million remarketing of Triborough Bridge and Tunnel Authority general revenue bonds triggered strong retail demand, according to the finance manager of New York's Metropolitan Transportation Authority.
"This was a very successful transaction and we were pleased," Patrick McCoy told the MTA board's finance committee in midtown Manhattan on Nov. 17, the closing day of the deal.
TBTA is an MTA unit. Proceeds funded various capital projects.
On Nov. 5, the MTA effected a mandatory tender and remarketed Subseries 2008 B-2 bonds. They continued in the term rate mode as floating-rate notes with an interest rate of 67% of the one-month London Interbank Offered Rates, or LIBOR, plus 0.50%. Final maturity of the bonds is Nov. 15, 2027.
McCoy called the deal's structure a "new and novel approach."
Joint book-running remarketing agents were Morgan Stanley and Siebert Brandford Shank & Co. LLC. Nixon Peabody LLP was bond counsel and Public Financial Management Inc. was financial advisor.
Moody's Investors Service rated the bonds Aa3. Kroll Bond Rating Agency assigned a AA rating, while Fitch Ratings and Standard & Poor's each rated them AA-minus.
The MTA also remarketed $111.2 million of Series 2008 B-4 bonds on Oct. 30. Those bonds will continue in the term rate mode as a five-year soft put bond with a reset date of Nov. 15, 2019. The transaction had an all-in true interest cost of 3.51% and an average coupon of 5%.
Hawkins Delafield & Wood LLP was bond counsel and PFM was financial advisor. Moody's rated those bonds Aa3. S&P and Fitch rated them AA-minus and A, respectively.
