(Bloomberg) — Bank of America Corp. and JPMorgan Chase & Co. were the winning bidders on $900 million of New York Metropolitan Transportation Authority debt to finance subway, bus and commuter-rail capital projects as the transit agency seeks federal aid to avoid major service cutbacks.
The sale shows the MTA, the largest mass-transit system in the U.S., can raise capital in the tax-exempt bond market even as revenue is down 40% and pre-coronavirus ridership may not return until almost 2023. MTA divided the debt sale into three groups, based on maturities, with each batch receiving eight bids, according to Aaron Donovan, a spokesperson for the agency. The all-in true interest cost for the sale was 4.49%, according to Donovan.
Even as the