The developer of 3 World Trade Center expects that the New York Liberty Development Corp. will sell $1.65 billion in tax-exempt bonds in September to complete the tower.
The NYLDC has approved the bonds in principal and must approve the bonds for this particular purpose, said Bud Perrone, spokesman for Silverstein Properties, the developer.
Gerardo Russo, a spokesman for the Empire State Development Corp. said on Aug. 5 that the NYLDC board does not have any meetings currently scheduled. Empire State Development Corp. handles communications for NYLDC.
The bonds, currently held in escrow, would be sold as Liberty Bonds and Recovery Zone Bonds. They will be fixed-rate bonds with interest-only payments for the first 15 years and amortize thereafter. About $1.4 billion of the bonds will be sold as bonds part of a senior or junior tranches. Another $250 million will be sold as a single tranche.
The building is expected to be 1,170 feet tall and will have 2.5 million square feet of office space over 58 office floors.
Perrone said that an institutional investor site visit and presentation is planned for the morning of Sept. 4.
Goldman, Sachs & Co., JPMorgan Securities LLC and Siebert Brandford Shank & Co., LLC will be the senior underwriters on the bonds.
The first seven floors of the building have been constructed, but further work was delayed when Silverstein had problems getting private financing. The developer asked the Port Authority of New York and New Jersey to provide loan guarantees, a request that was opposed by some Port Authority board members.
The authority and Silverstein came up with a different plan. Along with support that the authority was already providing, the authority agreed to release $50 million of insurance proceeds to Silverstein over the next few months. On the condition that Silverstein closes its financing on or before July 1, 2015, the authority has agreed to release another $109 million of insurance proceeds.
"Our focus throughout these negotiations has been to ensure that there is increased private sector participation and that the Port Authority enhances its position when compared to the 2010 agreement," said Port Authority Deputy Executive Director Deb Gramiccioni. The "modified agreement approved by the board achieves both of these goals and allows [Silverstein] to move forward and complete the construction of 3 World Trade Center."
On June 25 the authority's board voted 8 to 0 in favor of the new agreement with Silverstein.
The building is expected to be completed in 2018, according to the Port Authority.
The Port Authority will own the land and technically own the building. Silverstein will have a 99 year lease on the building.
