Press Release Article
PORT AUTHORITY SELLS $494 MILLION OF CONSOLIDATED BONDS
Date: Jan 21, 2004
Press Release Number: 6-2004
Port Authority Chairman Anthony R. Coscia announced today the competitive sale of Consolidated Bonds, 133rd Series, in the aggregate principal amount of $244.48 million and Consolidated Bonds, 134th Series, in the aggregate principal amount of $250 million. Both bonds were awarded on the basis of the lowest true interest cost of the bids received for each of the respective series.
The 133rd Series Bonds, awarded to Merrill Lynch & Co. at a price of $239,867,594, are comprised of bonds due from July 15, 2005 to January 15, 2021, at interest rates ranging from 1.25 to 4.40 per annum. The true interest cost to the Port Authority was 3.884 percent, the lowest of the four bids received.
The 134th Series Bonds, awarded to Bear, Stearns & Co. at a price of $254,917,818, are comprised of bonds due from July 15, 2009 to January 15, 2039, at interest rates ranging from 4 to 5 percent per annum. The true interest cost to the Port Authority was 4.677 percent, the lowest of the four bids received.
The proceeds of the 133rd Series bonds will be used in connection with the refunding of Consolidated Bonds, 91st Series on March 1, 2004.
The proceeds of the 134th Series bonds will be allocated, as appropriate, to capital projects in connection with Port Authority facilities and may also be used for refunding obligations of the Port Authority.
The bonds received an A1 rating from Moody’s Investors Service, AA- from Standard & Poor’s Corporation and AA- from Fitch Ratings, Inc.
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 and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit rail system; the Downtown Manhattan Heliport; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Marine Terminal on Staten Island; the Brooklyn Piers/Red Hook Container Terminal; and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade Center site in Lower Manhattan. The Port Authority is financially self-supporting and receives no tax revenue from either state.