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MTA TO REFUND UP TO $1.25 BILLION IN TWO BOND ISSUES; SAVINGS IN LOWER DEBT SERVICE COULD REACH $30 MILLION

 LOS ANGELES, April 14 /PRNewswire/ -- With the purpose of reducing debt service, the MTA board of directors on April 14, authorized the re-issuance of up to $1.25 billion in bonds, with a potential savings of $30 million of interest payments.
 Depending on bond market conditions, the MTA will issue up to $800 million in Proposition A sales tax revenue refunding bonds and up to $450 million in Proposition C sales tax revenue refunding bonds.
 The operation will be similar to refinancing a long-term home mortgage to lower the amount of interest paid out. In bond market terminology, the transaction is called a refunding.
 "Recent market conditions have indicated that the MTA may have an opportunity to refund a portion of its outstanding debt at significantly lower interest rates," said Franklin White, MTA chief executive officer.
 "If current market conditions improve, the MTA anticipates it could refund Proposition A bonds ranging up to $800 million, and Proposition C bonds up to $450 million, with new present-value savings of from $4 million to $30 million," White said.
 The bonds will be sold by two teams of underwriters, each of which is expected to exceed the 25 percent minority- and women-owned firms or disadvantaged business enterprise (DBE) participation goal set by the MTA, White said.
 The Proposition A financing will be led by Bear Stearns & Co., with co-senior managers Artemis Capital Group, Grigsby Brandford & Co. and Smith Barney, Harris Upham.
 The Proposition C financing will be led by Pryor McClendon Counts & Co., with co-senior managers E.J. De La Rosa & Co. and Paine Webber.
 The potential candidate bonds to be refunded will be various maturities from the Proposition A Series 1986-A, 1988-A, 1989-A, 1991-A, 1991-B and from the Proposition C Series 1992-A.
 -0- 4/14/93
 /CONTACT: Anthony Greno or Jim Smart of MTA, 213-972-4400/


CO: Los Angeles County Metropolitan Transportation Authority ST: California IN: SU:

BP-KJ -- LA028 -- 5894 04/14/93 17:38 EDT
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Date:Apr 14, 1993
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