New York's Metropolitan Transportation Authority may increase bond offering to $1 billion, delays pricing

By Sheri Kasprzak

New York, Feb. 11 - The Metropolitan Transportation Authority of New York City has decided to put off pricing its planned $750 million offering - and it may be increasing the deal size to $1 billion, said Jeremy Soffin with the MTA.

No final decision has been made yet on upsizing the deal, Soffin told Prospect News in an interview Monday.

The authority plans to sell at least $750 million in transportation revenue bonds on a negotiated basis on Tuesday. The offering had been set to price Monday. Soffin said the deal was put off because the authority felt it needed some extra time to prepare.

JPMorgan Chase & Co., Lehman Brothers and UBS Investment Bank are the lead managers with Bear, Stearns & Co., Citigroup Global Markets, Banc of America Securities, Depfa First Albany, Loop Capital Markets, Merrill Lynch & Co., Morgan Stanley, M.R. Beal & Co., Ramirez & Co., Raymond James & Associates, RBC Capital Markets, Roosevelt Cross, Siebert Brandford Shank & Co. and Wachovia Bank as the co-managers.

The bonds will price in a serial structure from 2009 to 2028 with term bonds due 2033 and 2038.

The MTA will use the proceeds for transit and commuter projects, as well as for refinancing debt held by the MTA and MTA Bridges and Tunnels.

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