New York's Metropolitan Transportation Authority will hold a retail pricing Wednesday and an institutional pricing Thursday for $805 million of Triborough Bridge and Tunnel Authority refunding bonds.
According to MTA spokesman Aaron Donovan, the sale, through negotiation, will consist of $180 million of Series 2013B senior bonds and $625 million in Series 2013A subordinate bonds.
Jefferies & Co. is book-running senior manager.
The authority postponed the sale from December, citing market conditions at the time. This week’s sale is downsized from the roughly $900 million it expected to sell last month.
Moody’s Investors Service assigned its Aa3 rating, while Fitch Ratings and Standard & Poor’s both assigned an equivalent AA-minus on the senior lien sale, and Moody’s assigned A1 and the other two agencies an equivalent A-plus on the subordinate series. Kroll Bond Rating Agency assigned AA and AA-minus ratings, respectively, to the senior and subordinate bonds.
In its preliminary official statement, the MTA cited board approval on Dec. 19 of toll and fare increases which will take effect on March and projected to produce annualized revenue of $450 million.
The agency is still estimating the overall cost of damage related to Hurricane Sandy.
Joseph Lhota resigned as MTA chairman in December to weigh a run for New York City mayor. Board vice chairman Fernando Ferrer is acting chairman until Gov. Andrew Cuomo names a successor, subject to state Senate approval.
Nixon Peabody LLP is bond counsel. Sidley Austin LLP is counsel for the underwriters while Lamont Financial Services Corp. is financial advisor.