New York’s Metropolitan Transportation Authority is executing a mandatory tender and remarketing of $297.6 million of Triborough Bridge and Tunnel Authority general revenue variable rate notes.
They involve tranches of $107.3 million Series 2001C and $190.3 million of Series 2005B, both because the irrevocable direct-day letter of credit issued by Bank of Tokyo-Mitsubishi UFJ Ltd. is expiring.
“Those transactions are well under way,” MTA finance director Patrick McCoy told members of the MTA board’s finance committee on Monday. The authority expects to close the deal June 27.
The MTA, one of the largest municipal issuers with roughly $38.6 billion of debt, will substitute with State Street Bank and Trust Co.
“As a bank facility comes up for renewal, we solicit pricing and capacity from the banking community,” said McCoy. “We were pleased with State Street’s proposal and are working with them on this.”
Orrick, Herrington & Sutcliffe and Bryant Rabbino LLP are bond counsel. Public Resources Advisory Group and Rockfleet Financial Services are financial advisors. Remarketing agents are Goldman, Sachs & Co. and Jefferies LLC for Series 2001C and 2005B-3, respectively.
The MTA competitively issued $1.6 billion in transportation revenue bond anticipation notes through two equal tranches on June 14, with proceeds to finance existing approved transit and commuter projects.
The authority received 73 unique bids for the first tranche, 64 for the second.
The all-in true interest rate was 1.95%. The average life is 2.4 years from the life of the notes.
“Multiple firms took notes from this transaction,” said McCoy. “We were very pleased with the results.”
Nixon Peabody LLP and D. Seaton and Associates were co-bond counsel. Public Resources Advisory Group and Backstrom McCarley Berry & Co. LLC were financial advisors.