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For Immediate Release
August 6, 2002
OAKLAND, Calif - The Port of Oakland sold $620
million in port revenue bonds on July 22nd and 23rd to help finance
$1.2 billion in capital projects in the Port’s capital improvement
program. The Capital Improvement Program 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 Port. Salomon Smith Barney
led the underwriting syndicate that offered the bonds in the public
market; other members of the syndicate included: Goldman, Sachs
& Co.; A.G. Edwards & Sons, Inc.; Henderson Capital Partners,
LLC; Loop Capital Markets, LLC; M.R. Beal & Company; and Ramirez
& Co., Inc.
“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
5.13 percent,” commented Frank Kiang, president, Board of
Port Commissioners. “The proceeds generated from the bond
sale will fund capital projects that the Port believes to be essential
in our ability to meet growth demands,” he added.
Fred Rickert, the Port’s Chief Financial Officer said,
“This is a significantly reduced capital improvement program
that has been phased to provide financial flexibility in the future.”
The Port expects that approximately 55 percent of the bond proceeds
will be used to finance Aviation Division projects, which include
terminal security and systems improvements, Terminal 2 renovation
and concourse extension, and a new parking structure to accommodate
additional passengers.
A portion of the bond proceeds will also be used to finance Maritime
Division projects including the completion of our Vision 2000
Program to construct new terminals, a new intermodal terminal,
and the dredging project, deepening the Port’s channels
and berths from 42 to 50 feet.
The Port of Oakland, established in 1927, is an independent department
of the City of Oakland. 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.
Contact:
Marilyn Sandifur
Media and Public Relations Manager
(510) 627-1193
msandifur@portoakland.com Alternate Contact:
Midori Tabata
Communications Assistant
(510) 627-1187
mtabata@portoakland.com |
