Published November 2001

Port sells bonds
at 'very favorable rates'
to finance expansion

By John Wolcott
Herald Business Journal Editor

Despite the chaos in the airline industry and temporary closure of major airfields across the country following the Sept. 11 terrorist attacks on New York City’s World Trade Center and the Pentagon, the Port of Seattle was able to market $508 million in long-term revenue bonds on Oct. 3 to finance the first phases of the expansion.

Projects moving ahead because of that financing include construction of the airport’s third runway, the Central Terminal Expansion Project, South Terminal expansion and several other expansion efforts.

Port of Seattle Commission Chair Clare Nordquist said, “The fact that we were able to sell the bonds at very favorable rates is a testament to our solid financial and operational management and to the outstanding work done by our investment banking team.”

Moody’s Investors Service has given the Port of Seattle a credit rating of Aa2, the highest of any public port or transportation system in the nation.

The bonds will yield an average of 5.25 percent interest and have a maximum maturity of 30 years.

“These projects have long-term implications for the local and regional economy,” Thomas said. “But they also have meaning in the near-term. These investments create local jobs and business revenues, which will help mitigate the economic downturn we’re experiencing.”

Goldman Sachs & Co. was the lead underwriter on the bond sale. UBS PaineWebber served as co-senior underwriter. Lehman Brothers and Siebert Brandford Shank & Co. were co-managers of the issue.

“The fact that the Port of Seattle was able not only to sell long-term bonds, but to sell them at very favorable rates, represents a major victory for airports and the municipal bond market nationwide,” said Paul Bloom with Goldman Sachs. “The high quality of the port’s credit makes it a natural leader in airport bond issues.”

Related: Sea-Tac expansion plans roll on despite fallout from terrorist attacks

Related: New airport security measures call
for patience and planning

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