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MTA Issues $370 Million in Bonds

By Munichain News Desk

The Triborough Bridge and Tunnel Authority, a division of New York’s Metropolitan Transit Authority (MTA), sold $370 million in bonds to finance MTA bridge and tunnel projects. 

The Triborough Bridge and Tunnel Authority, also known as MTA Bridges and Tunnels, sold the bonds in two series. The Series 2023B-1 bonds, consisting of $300 million, mature between 2034 and 2053, yielding between 3.14% and 4.11%. The Series 2023B-2 bonds, consisting of $70 million, mature between 2024 and 2030, yielding between 2.9% and 3.3%. The securities received a rating of AA- from Fitch Ratings, Aa3 from Moody’s Investors Service, AA- from S&P Global Ratings, and AA from Kroll Bond Rating Agency. 

“The rating reflects the bridge and tunnel system’s essentiality to the New York metropolitan region, which has resulted in long-term traffic stability and minimal demand elasticity,” according to Fitch.

The issuance comes as New York prepares to effectuate a congestion pricing program which would charge vehicles a toll for entering the city below 60th street in Manhattan. While the MTA has not yet decided on a price for the toll, it is reportedly considering charging $23. The MTA projects the tolls to generate $1 billion in additional annual revenue, beginning as early as spring of next year. MTA Bridges and Tunnels will design the congestion pricing tolling system and infrastructure, according to the MTA’s 2020-2024 Capital Program. 

The city is also implementing its $51.5 billion capital program, which calls for $3.3 billion in investment in bridges and tunnels. The Verrazano Narrows Bridge, which connects Staten Island and Brooklyn, is the most expensive improvement to New York’s bridges and tunnels, with renovations expected to cost one-third of the total bridges and tunnels allotment.

The bonds are general obligations of MTA Bridges and Tunnels, payable by its revenue. The authority collects $1.9 billion annually in tolls on the nine bridges and tunnels it manages.

Siebert Williams Shank & Co LLC served as lead underwriter on the issuance, purchasing the bonds for $403 million. The price reflected an original issue premium of $34 million.

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