CORRECTED-OFFICIAL-New York's MTA proposes $4.8 bln notes for Sandy

Wed Nov 28, 2012 12:53pm EST

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(MTA corrects to say notes are proposed, not approved)

NEW YORK Nov 28 (Reuters) - New York's Metropolitan Transportation Authority said on Wednesday i t p roposes to sell $4.8 billion of bond anticipation notes over the next two years to cover damages caused by Superstorm Sandy.

Under the plan, the MTA will sell $2.9 billion of the notes in 2013 and $1.9 billion in 2014, with the proceeds earmarked for repairing damaged infrastructure.

The debt will be repaid with reimbursements MTA will get from the Federal Emergency Management Agency and from insurance, officials said.

The MTA's initial storm damage estimate is $5.02 billion, and the agency said it expects it might have to cover $950 million of that amount on its own. (Reporting by Hilary Russ; Editing by Leslie Adler)

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