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New York MTA Kicks Off First-Ever Payroll-Tax Bond Deal

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. Popular Searches 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.

New York MTA Says Federal Aid Deal Prevents Devastating Cuts

New York MTA Says Federal Aid Deal Avoids ‘Devastating’ Cuts Bloomberg 12/21/2020 Michelle Kaske © Bloomberg Commuters wearing protective masks wait on a platform at the Times Square subway station in New York, U.S., on Thursday, Dec. 10, 2020. New York City had its credit rating cut by Fitch Ratings because of the impact the coronavirus pandemic is having on the city s economy. (Bloomberg) New York’s Metropolitan Transportation Authority said it stands to receive $4 billion of aid from the economic stimulus agreement struck in Congress, allowing the nation’s biggest mass-transit system to avoid thousands of job cuts and deep reductions to bus, subway and commuter train service.

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