In like a lion: N.Y. MTA plans March note, bond sales, remarketings
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The New York Metropolitan Transportation Authority and the Triborough Bridge and Tunnel Authority are planning several note and bond sales this month, the MTA said.
During the week of March 11, the MTA plans to sell two competitive payroll mobility tax bond anticipation note issues.
One transaction will consist of about $500 million of MTA Series 2024A PMT taxable BANs and the other will consist of roughly $300 million of TBTA Series 2024B tax-exempt PMT BANs.
Chip Barnett
Proceeds from the Series 2024B BANs will be used to finance transit and commuter projects included in the MTA’s 2020-2024 capital program. Proceeds from the taxable Series 2024A BANs will be used to finance working capital and other expenditures relating to transit and commuter systems.
Amounts are preliminary and subject to change and the BANs are expected to be sold around March 13.
Fitch Ratings assigned F1-plus ratings to the BANs while Kroll Bond Rating Agency assigned its K1-plus ratings.
PMT bonds are special obligations of the MTA issued under either the MTA resolution or TBTA resolution. Principal on the BANs is payable solely from authorized rollover BANs or bonds issued under the MTA or TBTA resolutions or other authorized debt. Interest is payable from pledged PMT revenues subordinate to senior lien PMT bond debt service.
During the week of March 18, the MTA will remarket $80.115 million of Series 2020B transportation revenue variable-rate refunding bonds to convert them to daily VRDBs with a new letter of credit supported by RBC. The remarketing agent will be RBC Capital Markets.
Also during the week of March 18, the MTA will offer about $1 billion of Series 2024A transportation revenue refunding climate bond certified green bonds. Proceeds will be used to refund some outstanding transportation revenue bonds and a subseries of TBTA PMT senior lien bonds. This deal will be priced by book-running senior manager Jefferies.
During the week of March 25, the MTA plans to remarket $255.83 million of three subseries of transportation revenue variable-rate bonds.
The bonds include $50 million of Subseries 2002D-2a-1, $100 million of Subseries 2002D-2b and $105.83 million of Subseries 2005D-1, which will be converted from SOFR FRNs to daily VRDBs with letters of credit supported by Truist Bank.
J.P. Morgan will be the remarketing agent for Subseries 2002D-2a-1 and Subseries 2005D-1 while and Truist Securities will be remarketing agent for Subseries 2002D-2b.
