Dec 19 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
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
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
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.