Press Release Article


PORT AUTHORITY ANNOUNCES NEGOTIATED SALE OF $750 MILLION OF CONSOLIDATED BONDS

Date: Jun 18, 2009
Press Release Number: 75-2009

Port Authority Chairman Anthony R. Coscia today announced the completion of the negotiated sale of Consolidated Bonds, 157th Series, Consolidated Bonds, 158th Series and Consolidated Bonds, 159th Series, in aggregate principal amounts of $150 million, $250 million and $350 million respectively. Interest on the Bonds is subject to federal taxation. The closing of the sale of the bonds will take place on or about July 1, 2009.

The 157th Series bonds, which will mature on December 1, 2019, were priced at par at 1.65 percent over the 10-year Treasury rate of 3.659 percent, providing a yield on the Bonds of 5.309 percent.

The 158th Series bonds, which will mature on December 1, 2024, were priced at par at 2.20 percent over the 10-year Treasury rate of 3.659 percent, providing a yield on the bonds of 5.859 percent.

The 159th Series bonds, which will mature on December 1, 2029, were priced at par at 1.55 percent over the 30-year Treasury rate of 4.49 percent, providing a yield on the Bonds of 6.04 percent.

The underwriting syndicate for the bonds was led by Citigroup Global Markets Inc., and included Cabrera Capital Markets Inc., Loop Capital Markets, Morgan Stanley & Co., Inc., Ramirez & Co., Inc., RBC Capital Markets and Siebert Brandford Shank & Co. Approximately 19 percent of the sales credit for the bonds was allocated to firms in the underwriting syndicate that qualify as either MBE or WBE entities.

There were more than $2 billion in orders for the bonds from more than 65 different institutional investors. The pricing was accelerated by one day to meet significant and diverse investor demand for the Port Authority’s credit, allowing for a reduction in spreads to Treasuries and lower yields for the Port Authority.

The proceeds of the Bonds are to be allocated for purposes of capital expenditures in connection with One World Trade Center, the retail components of the World Trade Center site and other World Trade Center sitewide infrastructure.

The Bonds received an Aa3 rating from Moody’s Investors Service, AA- from Standard & Poor’s Corporation and AA- from Fitch Ratings, Inc.

CONTACT:
The Port Authority of New York and New Jersey
Steve Coleman, 212 435-7777

The Port Authority of New York and New Jersey operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia, Stewart International and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Marine Terminal on Staten Island; the Port Authority Auto Marine Terminal; the Brooklyn Piers/Red Hook Container Terminal; the Greenville Yard-Port Authority Marine Terminal; and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade Center site in Lower Manhattan and is a partner in the Access to the Region’s Core tunnel project.

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