Despite a recent downgrade, the Port Authority of New York and New Jersey sold
RBC Capital Markets priced the bonds on Thursday with a final spread of 165 basis points over the 30-year Treasury.
"The transaction attracted interest from a wide range of global investors with greatest concentration coming from insurance companies and managers," said Jaime Durando, managing director at RBC.
The bonds were sold at par to yield 4.458% in 2062.
Moody's Investors Service
Standard & Poor's and Fitch Ratings both kept their AA-minus ratings on the bonds. Both assigned stable outlooks.
Proceeds from the sale will go toward the authority's multi-billion dollar redevelopment of the WTC site and also toward refunding outstanding bonds.
The bonds, which are subject to early redemption, are secured by the authority's revenues and cash reserves from its general reserve fund and consolidated bond reserve fund. Revenues include tolls, fares, rentals, and other fees.