Date: Jun 13, 2012
Press Release Number: 89-2012
Port Authority to Save $57.3 Million By Using Portion of Bond Proceeds to Refund Certain Obligations
Port Authority Chairman David Samson announced today the competitive sales of Consolidated Notes, Series ZZ, in the aggregate principal amount of $300 million, and Consolidated Bonds, 173rd Series, in the aggregate principal amount of $300 million. The Consolidated Notes, Series ZZ, and the 173rd Series Bonds were awarded on the basis of the lowest true interest cost of the bids received.
The Series ZZ Notes, awarded to Citigroup Global Markets Inc., at a price of $300,975,000, are composed of a term note due on December 1, 2012, at an interest rate of 1 percent per year. The true interest cost to the Port Authority was 0.239502 percent, the lowest of the eight bids received.
The 173rd Bonds, also awarded to Citigroup Global Markets Inc., at a price of $318,516,846.40, are composed of bonds due from December 1, 2018 to June 1, 2032, at interest rates ranging from 3 to 5 percent per year. The true interest cost to the Port Authority was 3.322613 percent, the lowest of the eight bids received.
The proceeds of the Consolidated Notes, Series ZZ, may be allocated to any purpose for which at the time of issuance of the notes the Port Authority is authorized by law to issue its obligations. The proceeds of the 173rd Series Bonds shall be allocated, as appropriate, to capital projects in connection with facilities of the Port Authority and/or for the purposes of refunding obligations of the Port Authority. The Port Authority expects to achieve overall savings of $57.3 million through the use of a portion of the bond proceeds in connection with the refunding of certain Port Authority obligations.
The Consolidated Notes, Series ZZ, received a MIG 1 rating from Moody’s Investors Service, SP-1+ from Standard & Poors Corporation and F1+ from Fitch Ratings Inc. The 173rd Series Bonds received an Aa2 rating from Moody’s Investor Service, AA- from Standard & Poor’s Corporation and AA- from Fitch Ratings Inc.
Port Authority of New York and New Jersey
Steve Coleman, 212 435-7777
Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation, trade, and economic development assets in the downstate region. The agency manages a network of some of the busiest aviation, ground, rail, and seaport facilities in the country, which support more than 500,000 direct and indirect jobs and generate $70 billion of economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site—where crews are currently at work to build the iconic One World Trade Center building. The Port Authority receives no tax revenue from either state or from New York City and is a financially self-supporting public agency that relies almost entirely on revenues generated by facility users, tolls, fees and rents. For more information, please visit http://www.panynj.gov/.