Port OKs $750M for WTC

The Port Authority of New York and New Jersey approved a $750 million sale of consolidated bonds and notes at its board meeting on Thursday. The proceeds will fund the World Trade Center redevelopment.

The agency selected Citi as underwriter for the bonds through a public request for proposal in March 2008.

“In view of the continuing volatility in the federally taxable municipal capital markets, greater transactional efficiencies would be achieved with the sale or sales of consolidated bonds and notes for these purposes on a negotiated basis,” the authority said in a statement.

In a release issued Friday, Moody’s Investors Service affirmed an Aa3 rating on the Port Authority’s outstanding consolidated bonds with a stable outlook.

The agency faces challenges with the development of the World Trade Center site, Moody’s said, noting that the authority has completed an assessment of costs and has resolved to keep construction costs on track.

The authority had $10.63 billion of consolidated bonds and notes outstanding as of April 15. Its debt service coverage was 4.28 at the end of fiscal year 2008

For reprint and licensing requests for this article, click here.
Transportation industry
MORE FROM BOND BUYER