Date: Jan 23, 2014
Press Release Number: 21-2014
The Port Authority of New York and New Jersey today announced the January 22 sale of two series of Consolidated Bonds in the total aggregate principal amount of $1 billion for World Trade Center redevelopment capital expenses. Interest on each series is subject to federal taxation.
Each series was issued with a $500 million principal amount and maturity date of August 1, 2046, subject to optional redemption and mandatory periodic retirement.
The 181st Series, with a “make whole” optional call provision, was issued with an annual interest rate of 4.96% (120 basis points above the 30-year U.S. Treasury rate). The 182nd Series, with a “10-year par” optional call provision, was issued with an annual interest rate of 5.31% (155 basis points above the 30-year US Treasury rate).
“Strong investor demand across both series provided us with cost-effective funding for the continued redevelopment of the World Trade Center site,” said Port Authority Chief Financial Officer Elizabeth McCarthy.
The underwriting syndicate for both series was led by BofA Merrill Lynch, and included Barclays, Citigroup, RBC Capital Markets, Academy Securities, CastleOak Securities, L.P., Drexel Hamilton, LLC, Loop Capital Markets, LLC, Ramirez and Co., Inc., Rice Financial Products Company, Siebert Brandford Shank & Co., L.L.C. and The Williams Capital Group, L.P. Approximately 18 percent of the sales credit for the bonds was allocated to firms in the underwriting syndicate that qualify as either MBE or WBE entities.
Each series received an Aa3 rating from Moody’s Investors Service, AA- from Standard & Poor’s Corporation and AA- from Fitch Ratings, Inc.
Port Authority of New York and New Jersey
Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. The agency’s network of aviation, ground, rail, and seaport facilities is among the busiest in the country, supports more than 550,000 regional jobs, and generates more than $23 billion in annual wages and $80 billion in annual economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site, where construction crews are building the iconic One World Trade Center, which is now the tallest skyscraper in the Western Hemisphere. The Port Authority receives no tax revenue from either the State of New York or New Jersey or from the City of New York. The agency raises the necessary funds for the improvement, construction or acquisition of its facilities primarily on its own credit. For more information, please visit http://www.panynj.gov.