BART pans $930 million muni bond sale as budget deficits loom
Briefly

BART pans $930 million muni bond sale as budget deficits loom
"One of California's largest public transit systems is tapping the municipal bond market as it contends with a looming fiscal cliff created by dwindling federal aid and ridership that's stuck at about half its pre-pandemic level. San Francisco Bay Area Transit District is selling $930 million of bonds to improve infrastructure and refinance outstanding debt, according to bond documents on MuniOS. The deal is set to price for retail investors on Tuesday."
"Proceeds from the sale are intended to help fund a $3.5 billion system renewal project that was approved by voters in 2016. The planned refurbishment includes 90 miles of track upgrades and control system replacements. The bonds are backed by a voter-approved property tax levied within Alameda, Contra Costa, and San Francisco counties. The transaction is set to include three tranches of general obligation bonds, one for $652 million of tax-exempt bonds, another for $48 million of federal taxable bonds and a third for $230 million of tax-exempt refunding bonds."
BART is selling $930 million of bonds to improve infrastructure and refinance outstanding debt. Proceeds will help fund a $3.5 billion system renewal project approved by voters in 2016, including 90 miles of track upgrades and control system replacements. The bonds are backed by a voter-approved property tax in Alameda, Contra Costa, and San Francisco counties. The transaction includes three tranches: $652 million tax-exempt, $48 million federal taxable, and $230 million tax-exempt refunding bonds. Moody's assigned Aa1 and Fitch assigned AAA. Ridership remains about half of pre-pandemic levels, federal aid has dwindled, and projected annual deficits approach $400 million.
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