By Sheri Kasprzak
New York, April 23 - The Metropolitan Transportation Authority in New York priced $1.25 billion in series 2009 dedicated tax fund bonds on Thursday, said Kevin Ortiz, spokesman for the authority.
The sale included $500 million in series 2009B tax-exempt bonds and $750 million in series 2009C Build America Bonds (/AA/A+).
The series 2009B bonds are due 2010 to 2034 with coupons from 3% to 5.25% and yields from 1.2% to 5.1%. The 3.5% 2009C bonds are due 2039, priced to yield 7.336% for a tax-exempt equivalent yield of 4.768%.
The true interest cost came to 4.92%, Ortiz said .
The offering was upsized from its planned $650 million size. The authority originally planned to sell $450 million in series 2009B bonds and $200 million of the series 2009C Build America Bonds.
J.P. Morgan Securities Inc. was the lead manager. The co-managers were M.R. Beal & Co., Barclays Capital Corp., Citigroup Global Markets Inc., Jefferies & Co., Loop Capital Markets LLC, Merrill Lynch & Co. Inc., Morgan Stanley & Co. Inc., Ramirez & Co. Inc., Raymond James & Associates Inc., RBC Capital Markets Corp., Roosevelt & Cross Inc., Siebert Brandford Shank & Co. LLC and Wachovia Bank.
The proceeds will be used to finance commuter and transit projects, as well as to refinance debt.
| Issuer: | Metropolitan Transportation Authority
|
| Issue: | Series 2009 dedicated tax fund bonds
|
| Amount: | $1.25 billion
|
| Type: | Negotiated
|
| Underwriters: | J.P. Morgan Securities Inc. (lead); M.R. Beal & Co., Barclays Capital Corp., Citigroup Global Markets Inc., Jefferies & Co., Loop Capital Markets LLC, Merrill Lynch & Co. Inc., Morgan Stanley & Co. Inc., Ramirez & Co. Inc., Raymond James & Associates Inc., RBC Capital Markets Corp., Roosevelt & Cross Inc., Siebert Brandford Shank & Co. LLC and Wachovia Bank
|
| TIC: | 4.92%
|
| Ratings: | Standard & Poor's: AA
|
| Fitch: A+
|
| Pricing date: | April 23
|
|
|
| Series 2009B tax-exempt bonds
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| Amount: | $500 million
|
| Maturities: | 2011 to 2034
|
| Coupons: | 3%-5.25%
|
| Yields: | 1.2%-5.1%
|
|
|
| Series 2009C Build America Bonds
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| Amount: | $750 million
|
| Maturity: | 2039
|
| Coupon: | 3.5%
|
| Yield: | 7.336%
|
| Tax-exempt yield: | 4.768%
|
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