N.Y. MTA Plans $300M Transportation Bond Sale

New York's Metropolitan Transportation Authority expects to issue $300 million of transportation revenue bonds next month, according to finance director Patrick McCoy.

McCoy told the MTA board's finance committee on Monday that the Series 2015B bonds would pay off bond anticipation notes the authority issued after Hurricane Sandy struck the region on Oct. 29, 2012.

At the time the authority issued $200 million of BANs through Bank of America Merrill Lynch & Co. and $100 million through Key Bank. "We plan to take them out with long-term bonds," said McCoy.

The sale is scheduled for March 9-10 with closing scheduled for March 19, said McCoy. Nixon Peabody LLP is bond counsel for the sale and Public Financial Management Inc. is financial advisor.

Also in March, the MTA will effect a mandatory tender and remarket $50 million of transportation revenue bonds, Subseries 2012A-3, because its current interest-rate period is set to expire by its terms on May 15.

Transportation revenue bonds represent about 60% of MTA's debt. The authority has $34 billion of debt overall as of Dec. 31. Moody's Investors Service rates those bonds A2, while Fitch Ratings and Standard & Poor's rate them A and AA-minus, respectively.

In January, the MTA priced $850 million of TRBs in two subseries: $600 million as fixed-rate serial and term bonds, the remainder as SIFMA floating-rate notes with an initial purchase date of five years. The notes are linked to a Securities Industry and Financial Markets Association index.

According to McCoy, the all-in true interest cost was 3.99%. "There were very attractive conditions in the market at this time," he said.

Also in January and early February, the MTA remarketed $244 million general revenue and subordinate revenue bonds.

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Transportation industry New York
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