Date: Aug 15, 2014
Press Release Number: 167-2014
$131 million in present value savings secured through refunding of outstanding bonds
The Port Authority of New York and New Jersey announced the sale on August 14, 2014 of two series of tax-exempt consolidated bonds in the total aggregate principal amount of $830 million.
The two series of bonds consist of the 184th Series, with a principal amount of $347 million and a final maturity of September 1, 2039, and the 185th Series, with a principal amount of $483 million, subject to the alternative minimum tax and a final maturity of September 1, 2034.
The two series were issued with coupons ranging from 3.00 to 5.00 percent, at an aggregate true interest cost to the Port Authority of 3.63 percent.
The Port Authority received $240 million in retail orders during its one-day retail order period on Wednesday. Strong investor demand across the curve made it possible to reduce yields during the offering process.
The two series will refund certain outstanding consolidated bonds producing $131 million in net present value savings or 14 percent of refunded par. The two series were sold via negotiated sale by a syndicate led by Citigroup.
"We are pleased with the market's response today," said Elizabeth M. McCarthy, the Port Authority's Chief Financial Officer. "Strong retail and institutional demand resulted in significant savings for the Port Authority."
The Port Authority's Consolidated Bonds received ratings of AA- from Standard & Poor's, AA- from Fitch Ratings and Aa3 from Moody's Investors Service.
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.