The Triborough Bridge and Tunnel Authority sold $591.8 million in bonds to refund previously issued securities.
The authority issued the bonds in three subseries. The Subseries 2024B-1 bonds, consisting of $379.2 million, mature between 2045 and 2054, yielding between 3.74% and 4.21%. The Subseries 2024B-2 bonds, consisting of $100 million, mature in 2031 and yield 2.85%. The Subseries 2024B-3 bonds, consisting of $112.6 million, mature in 2025 and yield 3.36%.
The securities received a rating of AA+ from Fitch Ratings, AA+ from Kroll Bond Rating Ageny, and AA+ from S&P Global Ratings.
The rating “reflects the solid growth prospects of the dedicated revenue stream and ample resilience of the bond structure,” Fitch analysts wrote.
The bonds are special obligations of the authority, payable by payroll mobility taxes, which is a tax levied by the state on workers in New York City and its surrounding suburbs. New York generated more than $2 billion in payroll mobility tax revenue last fiscal year.
The authority, also known as MTA Bridges and Tunnels, is a division of the Metropolitan Transportation Authority (MTA), which runs public transit in the New York City metropolitan area.
The issuance comes ahead of the implementation of congestion pricing at the end of next month, which the MTA expects will increase revenue by $1 billion—or about 15%—annually. The MTA will use that revenue to secure bond issuances.
MTA Bridges and Tunnels will use the issuance proceeds to refund tax anticipation notes it sold in 2022 and bonds it issued in 2012 and 2013.
BofA Securities, Inc served as lead underwriter on the issuance, purchasing the bonds for $634.5 million. The price reflected a premium of $45.2 million and a discount of $2.5 million. Public Resources Advisory Group, Inc and Backstrom McCarley Berry & Co, LLC acted as financial advisors.