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For Immediate Release
March 31, 2000
OAKLAND, CALIF.--The Port of Oakland sold $400 million in port revenue bonds on Wednesday to help finance capital projects in the Port's extended capital improvement program, a program that is projected to be implemented through the year 2006. The bonds were rated AAA/Aaa/AAA by Standard & Poor's, Moody's Investors Service and Fitch IBCA, based upon bond insurance provided by Financial Guaranty Insurance Company (FGIC).
In conjunction with the sale, the Port's underlying long-term bond ratings were affirmed by all three of the bond rating agencies, at AA- (Fitch IBCA); A+ (Standard & Poor's); and A1 (Moody's Investors Service). The bonds are secured by a pledge of revenues generated by the three Port divisions. Goldman Sachs & Co. led the underwriting syndicate that offered the bonds in the public market; other members of the syndicate included Morgan Stanley Dean Witter; PaineWebber Incorporated; Henderson Capital Partners, LLC; and Ramirez & Co., Inc. The Port expects that approximately 80% of the bond proceeds will be used to finance Maritime Division projects, which include the renovation and reconfiguration of existing facilities and portions of the "Vision 2000 Program," which involves the construction of new terminals, a Joint Intermodal Terminal and a dredging project, which will deepen the Port's channels and berths from 42 to 50 feet.
A portion of the bond proceeds will also be used to finance certain Aviation Division projects, in anticipation of a major redevelopment and expansion of the Airport, scheduled to commence within the next several years. In addition to debt, the Port expects to fund capital projects with federal grants, passenger facility charges, Port cash, and third-party funds.
"The Port was fortunate to bring this bond issue to market during a period of relatively low historic interest rates, which was reflected in the overall true interest cost on the issue of 5.85%," commented John Loh, president, Board of Port Commissioners. "The proceeds generated from the bond sale will fund capital projects that the Port believes to be essential to our ability to maintain future competitiveness. The funding will allow the Port to meet the needs of existing tenants and to attract new tenants." The Port of Oakland, established in 1927, is an independent department of the City of Oakland employing some 560 people. The Port extends approximately 19 miles along the east side of the Oakland Estuary from the border of the city of Emeryville immediately north of the San Francisco-Oakland Bay Bridge, to the south to the border of the city of San Leandro.
Port facilities include four major marine terminal areas covering almost 1,000 acres; Oakland International Airport which covers an area of over 2,500 acres; 1,100 acres of commercial, industrial, recreational and other land; 950 acres of underdeveloped land; and about 9,800 surface acres of water area.
Contact:
Debbie Girard
(510) 627-1187
dgirard@portoakland.com |
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