UPDATE 1-NY Triborough Bridge & Tunnel bond sale delayed again
Dec 19 (Reuters) - The Triborough Bridge and Tunnel Authority's sale of $728 million of revenue refunding bonds for the New York Metropolitan Transportation Authority (MTA) has been put on hold for the second time, a market source said on Wednesday.
The sale, originally sized at $904 million and slated to be priced last Thursday, was postponed until this week due to volatile market conditions. Now the deal has been delayed again, according to the source.
"The market is not digesting new issues and we will wait to see better conditions," Aaron Donovan, a spokesman for the MTA, said on Wednesday. A new date for the sale has yet to be determined, but the authority will reevaluate the sale in January.
On Monday, Patrick McCoy, the MTA's finance director, said the agency had been watching market conditions until Wednesday to decide whether to postpone the sale to January.
The deal, which is pricing through Jefferies & Co, consists of $80 million of general revenue bonds and $648 million of subordinate revenue bonds.
Other issues on this week's estimated $3 billion deal calendar have also been postponed due to market conditions.
J.P. Morgan Securities was scheduled to price a Hillsborough County Industrial Development Authority $162 million hospital revenue refunding bond issue for the Tampa general hospital project.
Bank of America Merrill Lynch was to price nearly $118 million of power supply revenue system revenue refunding bonds for the Oklahoma Municipal Power Authority.
Since Dec. 10, prices of top-rated municipal bonds in the $3.7 trillion U.S. municipal bond market have been dropping amid concerns over tax reforms discussed in Washington.
On Thursday prices were flat, according to preliminary indications by Municipal Market Data, a unit of Thomson Reuters.
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