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NY/NJ Port Authority Sells $380 Mln in Bonds

By Munichain News Desk

The Port Authority of New York and New Jersey issued almost $380 million in bonds to finance capital projects.

The bonds were issued in two series. They include $193 million in serial bonds maturing between 2040 and 2044, yielding between 3.53% and 3.7%; $72.5 million in term bonds due July 15, 2048, yielding 3.85%; and $113 million in term bonds due July 15, 2053, yielding 3.93%. All of the bonds pay interest at 5%. The securities received a rating of Aa3 from Moody’s Investors Service, AA- from S&P Global Ratings, and AA- from Fitch Ratings.

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,” according to Fitch.

The issuance comes as the infrastructure managed by the authority nears prepandemic levels of traffic. 

The authority collects tolls and fees on its infrastructure, and uses the money to maintain and improve bridges, tunnels, airports, and ports in New York and New Jersey. The COVID-19 pandemic battered the authority’s revenue, which shrunk amid a lack of commuters. Even with traffic close to 2019 levels, the authority is still feeling the effects of the pandemic-driven reduction in revenue.

“Revenues lost during the COVID-19 period cannot be recouped even after activity volume has recovered to pre-COVID-19 pandemic levels,” according to the official statement accompanying the sale of the bonds.

The bonds are general obligations of the authority, backed by its full faith and credit. They will be supported by revenue from the authority.

Goldman Sachs & Co. LLC served as lead underwriter on the issuance, purchasing the bonds for $398 million. The price reflected a premium of $18 million.

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