NY’s MTA Mulls Replacing Build America Bonds With Lower-Cost Debt
- Transit agency has $3.73 billion of BABs outstanding
- MTA seeks to use special provision to refund BABs for savings
Passengers ride a Metropolitan Transportation Authority subway in New York City.
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New York’s Metropolitan Transportation Authority is considering refunding at least a portion of its $3.73 billion of taxable Build America Bonds into tax-exempt debt, even as some investors push back against such transactions.
The MTA’s board is set to meet this Wednesday and could give the transit agency the authority to refinance its BABs if officials see an opportunity to reduce debt-service costs, according to MTA board documents. The transit agency, which runs New York City’s subways, buses and commuter rail lines, has yet to announce a potential refunding sale.