Port Authority Sells $595M

The Port Authority of New York and New Jersey sold $595 million of consolidated bonds in two competitive offerings on Wednesday. About $425 million of the 175th Series bonds were awarded to Bank of America Merrill Lynch at a true interest cost of 2.9797%. Yields ranged from 0.215% with a 4% coupon in 2013 to 3.4% with a 3.25% coupon in 2042.

About $170 million of 176th Series taxable bonds were awarded to Citi at a true interest cost of 1.7224%. Yields ranged from 0.57% with a .6% coupon in 2015 to 2.48% with a 2.5% coupon in 2022. Credits maturing in 2013 and 2014 were sold via sealed bid.

The proceeds from the 175th Series bonds will be used to finance capital expenditures at the authority’s tunnels, bridges, and Port Authority Trans-Hudson facilities, as well as to refund outstanding bonds. Proceeds from the 176th Series bonds will be used to finance general Port Authority purposes.

The bonds received an Aa3 rating from Moody’s Investors Service and an equivalentAA-minus from both Standard & Poor’s and Fitch Ratings.

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