NY MTA sells $550m bonds, others stalled by financial crisis

New York's Metropolitan Transportation Authority (MTA) has broken a financial logjam successfully selling $550m of bonds Friday.  Many other toll authorities are unable to borrow due to the great financial crisis. North Carolina Turnpike Authority and North Texas Tollway Authority both recently postponed attempts to raise bond money.

The New York MTA which runs the city's seven toll bridges and two toll tunnels as well as subways, buses and suburban commuter rail depends for its financial viability on profits on tolls.  It's nine toll facilities bring in about $1,600m, making it by far the largest toller in the country.  Every other MTA activity bleeds money by the hundreds of millions a year, fares barely covering half of operating costs.

NY MTA paid a price for borrowing in the current market.

Its 20 year bonds were priced to yield 6.75%, a full percentage point higher than similar bonds cost earlier this year.

$85m of the $550m were sold to small investors. Former mayor Ed Koch recorder promotional radio ads for the NY MTA.

North Carolina postpones attempt to sell revenue bonds for Triangle Parkway

The financial crunch has caused North Carolina Turnpike Authority to put on hold plans to sell $600m of toll revenue bonds for the Triangle Expressway, a 30km (19 mile) 3+3 lane tollroad in the Raleigh-Durham area.

David Joyner, CEO of the NCTA is quoted locally: "The credit windows are closed on bond issues right now, and nobody knows exactly what’s going to happen or when....We remain hopeful, if not optimistic, that this storm will eventually pass and the clouds will clear so we can set sail as soon as possible.”

For news from Texas see:

http://www.tollroadsnews.com/node/3789

TOLLROADSnews 2008-10-19 ADDITIONS 2008-10-20