Press Release Article
PORT AUTHORITY SELLS $250 MILLION OF CONSOLIDATED BONDS
Date: Nov 01, 2006
Press Release Number: 88-2006
Port Authority Chairman Anthony R. Coscia announced today the competitive sale of Consolidated Bonds, 145th Series, in the aggregate principal amount of $250 million. The 145th Series Bonds were awarded on the basis of the lowest true interest cost of the bids received.
The 145th Series Bonds, awarded to Lehman Brothers, at a price of $245,770,000.00, are composed of a term bond due on November 1, 2032, at an interest rate of 5.75 percent per annum. The true interest cost to the Port Authority was 5.882820 percent, the lowest of the six bids received.
The proceeds of the 145th Series Bonds may be allocated to any purpose for which at the time of issuance of the Bonds, the Port Authority is authorized by law to issue its obligations. The Bonds are subject to federal taxation.
The Bonds are fully insured by Ambac Assurance Corporation and rated AAA based on the insurer\'s financial strength. The Bonds also received underlying ratings of A1 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 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; the Port Authority-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.