MTA Borrows $2.9 Billion From Fed Before Window Closes
- Subway operator is one of just two to tap muni credit line
- Agency is using short-term borrowing to cope with revenue drop
A conductor wears a protective mask while operating a subway train in New York, on Nov. 17.
Photographer: Gabriela Bhaskar/BloombergThis article is for subscribers only.
New York’s Metropolitan Transportation Authority borrowed $2.9 billion from the Federal Reserve’s emergency credit line for states and local governments, marking the second time the transit agency has turned to the central bank as it contends with a steep drop in ridership from Covid-19.
The transit agency sold payroll mobility tax bond-anticipation notes with a 1.33% coupon for those maturing in 2023 to the Fed’s Municipal Liquidity Facility, according to data compiled by Bloomberg. Aaron Donovan, a spokesperson for MTA, confirmed the sale in an email on Thursday.