MTA, Series 2014A

Metropolitan Transportation Authority
$400,000,000
Transportation Revenue Bonds, Series 2014A

MTA achieves 13.1% pv savings in February 2014

Siebert Brandford Shank served as joint-book-running senior manager on the Metropolitan Transportation Authority’s financing in February 2014. The bonds were issued to finance transit and commuter projects and to refund the previously issued 2003A and 2003B transportation revenue bonds.

Structured with the underlying purpose to refund the 2003A and 2003B bonds, the new money bonds were wrapped around the refunding structure creating an aggregate level $400 million structure.

The MTA offered its bonds during a favorable week, as total market issuance only amounted to $1.89 billion with the MTA financing comprising the largest deal that week. As a result, the MTA was able to tighten spreads by as much as 5 basis points between initial retail pricing levels and repricing. The favorable interest rate environment allowed the MTA to achieve $19.2 million of net present value savings, or 13.1% pv savings of refunded bonds, on the 2014A-2 series, the refunding portion of the transaction.