(Bloomberg) -- The Metropolitan Transportation Authority, the largest mass-transit provider in the U.S., plans to raise $1.06 billion in September through its first sale of bonds backed by the Hudson Yards development in Manhattan.
The securities will be repaid by revenue from parcels of land leased to Related Cos and Oxford Properties Group Inc., as well as other rents to be collected from projects to be built on the west side of the yards, according to bond documents. The development currently includes an office building, two mixed-use residential towers and a retail center.
Moody’s Investors Service rates the bonds A2, its sixth-highest grade. Kroll Bond Rating Agency assigned its A- rating, one step lower. The MTA had $37.6 billion of debt outstanding as of July 8, according to its website.
The bonds will retire short-term notes that provided financing for capital projects and raise additional money for transportation infrastructure, according to bond documents.