Date: Jul 18, 2007
Press Release Number: 61-2007
Port Authority Chairman Anthony R. Coscia announced today the negotiated sale of $350 million in total aggregate principal amount of The Port Authority of New York and New Jersey Versatile Structure Obligations, Series 7, to an underwriting syndicate consisting of Goldman, Sachs & Co., Citigroup Global Markets Inc., Merrill Lynch & Co. and UBS Securities LLC.
The Series 7 Obligations will be the Port Authority’s first series of auction rate securities. The variable interest rate for auction rate securities is determined from time to time by an auction agent appointed by the authority.
The issuance of auction rate securities will enable the Port Authority to diversify its debt portfolio, reduce interest costs and increase overall variable rate exposure. Strong retail investor demand in the States of New York and New Jersey is expected to create a significant investor base for the Series 7 Obligations. Auction rate securities will also enable the Port Authority to broaden its access to the retail markets to diversify its investor population.
The Bank of New York will initially serve as auction agent for the Series 7 Obligations. Goldman, Sachs & Co., Citigroup Global Markets Inc., Merrill Lynch & Co. and UBS Securities LLC, were selected through a request for proposals process to serve as broker-dealers, to provide remarketing and other services in connection with the Series 7 Obligations. First Albany Capital Inc. provided financial advisory services.
The Series 7 Obligations are fully insured by MBIA Insurance Corporation and rated AAA based on the insurer’s financial strength. The Series 7 Obligations also received underlying ratings of A2 from Moody’s Investors Service, A+ from Standard & Poor’s Corporation and A+ 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.