New York MTA Kicks Off First-Ever Payroll-Tax Bond Deal
Bloomberg
1 hr ago
Michelle Kaske
(Bloomberg) -- New York’s Metropolitan Transportation Authority began marketing its first-ever bond sale backed by a payroll tax and lowered the initial yield on debt maturing in 30 years to 1.84, according to preliminary pricing information.
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The MTA, the operator of the nation’s largest public-transit system, is issuing the debt backed by that tax to provide extra security to investors after subway and bus ridership plunged after the pandemic. The preliminary yield is 29 basis points over the AAA benchmark.
The $1.2 billion offering includes $995.6 million of tax-exempt bonds and $248 million of taxable debt, according to preliminary pricing. The MTA first offered a 1.9% yield on the 2051 bond and then cut it to a tentative 1.84% yield during repricing.