The Port Authority of New York and New Jersey sold more than $711 million in bonds to refund a previous issuance.
The bonds were issued in two series. The 238th Series bonds, consisting of $248 million in principal, mature between 2034 and 2040, with yields ranging from 3.65% to 4.1%. They will have a stated interest rate of 5%. The 239th Series Bonds, consisting of $463 million in principal, are term bonds that mature on July 15, 2053. They have a stated interest rate of 5.072% per year.
The bonds received a rating of AA- from Fitch Ratings, Aa3 from Moody’s Investors Service, and AA- from S&P Global Ratings.
The issuance comes as the authority continues its economic recovery from the COVID-19 pandemic, which shattered its revenue as would-be commuters stayed home.
The rating reflects the authority’s “solid credit profile, including a sound recovery from the pandemic across the key business segments of bridges and tunnels, aviation, and port facilities. The ratings also reflect the authority’s strong oversight of operating and capital costs during the pandemic and post-pandemic periods, when traffic volumes and operating revenues were adversely impacted,” according to Fitch.
During pandemic-altered 2020, the authority recorded $4.3 billion in revenue and a net loss of $490 million. In 2022, it recorded almost $6 billion in revenue and $943 million in net income.
The bonds will be backed by revenue from the authority, which charges tolls on the bridges, tunnels, and other infrastructure that it manages. Fitch expects that the three airports managed by the authority, John F. Kennedy International Airport, LaGuardia Airport, and Newark Liberty International Airport, to be significant revenue drivers.
Barclays Capital Inc served as lead underwriter on the issuance.