All Port Authority Auction Rate Securities to be Refunded by May 1
Port Authority Chairman Anthony R. Coscia announced today the competitive sale of Consolidated Bonds, 150th Series, in the aggregate principal amount of $350 million, and Consolidated Bonds, 151st Series, in the aggregate principal amount of $350 million. Both the 150th Series bonds and the 151st Series bonds were awarded on the basis of the lowest true interest cost of the bids received for each of the respective series.
The proceeds of the 150th Series bonds will be allocated in connection with the refunding of the Port Authority’s Versatile Structure Obligations, Series 7. The proceeds of the 151st Series bonds will be allocated in connection with the refunding of the Port Authority’s Versatile Structure Obligations, Series 8, and the refunding of certain Port Authority Commercial Paper Notes, Series A. Versatile Structure Obligations Series 7 and 8 were originally issued as auction rate securities and represent the Port Authority’s total exposure to the auction rate market. All outstanding Port Authority auction rate securities will be refunded by May 1, 2008.
The 150th Series bonds, awarded to Lehman Brothers, Inc., at a price of $343,288,944.00, are comprised of bonds due from September 15, 2013 to March 15, 2027, at interest rates ranging from 4.125 to 6.40 percent per year. The true interest cost to the Port Authority was 5.852314 percent, the lowest of the four bids received. The bonds are subject to federal taxation.
The 151st Series bonds, awarded to Goldman, Sachs & Co., at a price of $348,066,142.25, are comprised of bonds due from September 15, 2019 to March 15, 2035, at interest rates ranging from 5.25 to 6.00 percent per year. The true interest cost to the Port Authority was 5.761636 percent, the lowest of the two bids received. The bonds are subject to the alternative minimum tax.
Both bonds received an Aa3 rating from Moody’s Investors Service, AA- from Standard & Poor’s and AA- from Fitch Ratings. The 150th Series bonds also received a Global Scale Rating from Moody’s Investors Service of Aa1.
Moody’s Investors Service also upgraded to Aa3 from A1 the rating for the Port Authority’s outstanding Consolidated Bonds and upgraded to A1 from A2 the rating for the Port Authority’s outstanding Versatile Structure Obligations.
A. Paul Blanco, the Port Authority’s Chief Financial Officer, said, “The rating upgrade by Moody's recognizes the Port Authority's strong financial performance and focused management approach to its day-to-day operations. The Port Authority remains a strong, vital force in the region's economy as we move ahead with our historic $29.5 billion, 10-year Capital Plan, to upgrade and rebuild the region's major transportation infrastructure.”
Candace McAdams, 212 435-7777, firstname.lastname@example.org
Steve Coleman, 212 435-7777, email@example.comThe 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, Stewart International 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.