The Port of Seattle navigated a volatile municipal bond market to price a $251.9 million revenue bond transaction that its finance team said highlights both the strength of the port's credit profile and its ability to execute a refunding in a challenging environment.
The deal priced Aug. 5 by lead manager Siebert Williams Shank & Co. refunded outstanding port debt and resulted in $16.4 million in net present value savings, a result that exceeded the port's internal targets, according to the finance team.
The Port of Seattle team found itself preparing for the pricing in an atmosphere defined by shifting economic signals.
Leading up to the pricing, U.S. Treasuries reached their highest levels since 2007, said Amanda Parker, a managing director at Siebert.
"Leading up to pricing, we were seeing swings in market conditions and volatility," Parker said.
She added that there were external pressures, including "escalations
Despite this, "there was an optimism" regarding the situation in Iran that fueled some positive rate movement as well, she said.
The deal was timed to match the release of the port's audited financials, a choice that proved beneficial as the market stabilized in early August, according to the finance team.
Scott Bertram, the port's manager of corporate finance, said the team monitors the market week-to-week to ensure the timing aligns with investor demand.
"We were looking week-to-week to make sure we matched the right week or day," Bertram said. "We did look at the
By avoiding the immediate aftermath of that meeting, the port found a window of stability that had been absent in the previous week, allowing it to secure a favorable result, Bertram said.
The resulting savings, estimated at roughly 5.45% on a net present value basis, were considered a win by the port's financial team, especially given the interest rate environment.
Chris Wimsatt, the port's chief financial officer, said achieving such results in the current climate was no small feat.
"We sold the par amount, which resulted in $16.4 million in NPV savings," said Chris Wimsatt, the port's chief financial officer. "That was a pretty great result, particularly in a challenging environment."
The finance team said that 2026 is looking to hit the
For the Port of Seattle, this transaction is part of a broader, disciplined financial strategy designed to manage a significant
The port operates five divisions — aviation, the Northwest Seaport Alliance joint venture, maritime, economic development, and corporate — with Seattle-Tacoma International Airport accounting for 80% of the port's consolidated operating revenue and 90% of its general revenue debt, according to Moody's Ratings.
The current capital program is sizable, addressing future capacity needs and operational efficiency, with most of the budget focused on aviation projects, Bertram said. He noted that the airport is currently at the "tail end of mega projects," such as the $2 billion S Concourse.
"Our airport-specific capital plan totaled about $8.8 billion," Bertram said. "We have about $2.6 billion expected to be funded by future revenue bonds through 2030."
This long-term planning framework is a cornerstone of the port's credit story, which remains a favorite among investors, according to the finance team.
Fitch Ratings assigned the port's $38.6 million first lien revenue refunding bonds its AA rating, while assigning the $210.6 million intermediate lien revenue refunding bonds a AA-minus rating, with a stable outlook.
Moody's assigned its Aa2 rating to the first lien refunding bonds and Aa3 to the intermediate lien bonds.
Ahead of the deal, S&P Global Ratings affirmed its AA rating on the port's first-lien revenue bonds, and its AA-minus on the intermediate lien.
These ratings reflect the port's strong market position, diversified revenue base, and sound financial management, according to the rating agencies.
The airport recorded a record 26.3 million passenger enplanements in 2025, according to the official statement.
"The port's ability to tap into tax levy revenue assessed over the port district, which is coterminous with King County, provides an additional layer of security," Moody's analysts said in the ratings report issued ahead of the deal. It assigns the port and its limited tax general obligation bonds, which weren't part of this month's deal, its Aaa rating. "With assessed valuation increasing roughly 9% annually on average since 2014 to more than $920 million, the port benefits from a strong and diverse tax base encompassing about 30% of Washington's population."
The investor reception to this month's pricing was robust, despite the broader context of a heavy supply year, said David Stinfil, a managing director at Siebert.
He also noted that while the year started slowly, August saw a significant pick-up in supply.
"We have been anticipating heavy supply throughout the year," Stinfil said. "Last year was a record. This year, the consensus for total muni supply is $600 to $650 billion."
While July supply figures were lower than anticipated, the market's performance in August suggests that appetite remains strong, Parker said.
Parker said the demand was largely institutional, noting that the deal attracted orders from over 62 various investors.
"It was geared toward institutional investors," she said. "We saw the largest demand and subscription in the longer maturities, specifically 36 to 40 years."
It's been a strong year for airport bond issuance.
Investors are increasingly drawn
As supply ramps up toward the end of the year, with other major airports like
Parker observed that airport bonds, many of which are subject to alternative minimum tax on interest, continue to offer yield benefits compared to non-AMT bonds, which attracts investors looking to capitalize on that premium. "Investors who are not subject to AMT tax are interested in the additional yield they can get over non-AMT bonds," she said.
The port's financial team is already thinking about the next phases of its capital plan.
The refunding deal helped optimize the port's debt structure and provided immediate savings. Now the focus shifts to the next series of new money issuances.
Bertram noted that the port has historically
"Next summer is likely to be a fairly large revenue bond transaction," he said.
The success of this sale was ultimately a team effort, supported by co-managers Goldman Sachs and Stern Brothers, municipal advisor Piper Sandler and bond counsel Pacifica Law Group.
For the port, it was a validation of its strategy to enter the market when conditions aligned with their internal requirements, avoiding the pitfalls of extreme market volatility while capturing strong investor demand, Wimsatt said.
"It was a challenging market, but we got it done," Wimsatt said. "All in all, it was very much viewed as a success."
By maintaining a disciplined financial planning framework and leveraging its competitive advantages, the port's finance team says it has demonstrated that its credit profile can attract heady investor interest even amid challenging market conditions.
The result helped create a more efficient debt profile, significant cost savings for the port, and a continued, stable foundation for the massive capital investments that will shape the future of Seattle's aviation and maritime infrastructure, Wimsatt said.
