N.Y. MTA Selling First Payroll-Tax Bonds in $1.3 Billion Deal

April 12, 2021, 1:29 PM

New York’s Metropolitan Transportation Authority, the largest U.S. public transit system, plans to sell $1.3 billion of bonds next week that will be repaid with a payroll tax, the first time the agency is offering long-term debt backed by that revenue.

Why It Matters

The inaugural bond deal offers bondholders a way to invest in the MTA while avoiding the agency’s most crucial problem: will ridership on subways, buses and commuter rail lines return to pre-pandemic levels? The bonds will be repaid from the so-called payroll-mobility tax that employers in New York City and its surrounding counties pay to...

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